Elliott Wave InternationalmyEWISocioniomics.Net

Will 2013 Be the Year of Municipal Bonds?
A memory jog recalls what happened the last time the mainstream experts extolled munis for their immunity to default. Will history repeat itself now?

By Nico Isaac
12/31/2012 9:45:00 AM

The opening lyrics to the famous New Years Eve song "Auld Lang Syne" seem painfully relevant in light of the moral dilemma facing US investors as they stand at the cusp of 2013. To wit: Should they put the old markets of yore behind them? According to a Dec. 28 MarketWatch cover story, the answer is NO: "Muni bonds may be the money makers in 2013." Speaking of not forgetting, this isn't the first time we've seen the mainstream experts stand behind the idea that tax-exempt debt puts the -- well -- "muni" back in immunity.

Filed Under: credit crisis, debt, Elliott wave, Interest Rates, investment decisions, municipal bonds, pension funds, safe haven, U.S. Treasuries

Category: U.S. Economy


The Trap is Set for High-Yield Bond Investors
"Junk" bonds have that name for a good reason

By Bob Stokes
12/12/2012 5:45:00 PM

Low interest rates have attracted a swarm of yield hungry investors into junk bonds. Learn why these investors may have stepped into a soon-to-shut trap.
 

Filed Under: all the same market theory, credit rating, debt, Elliott wave, Interest Rates, junk bonds, risk appetite, Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates


Why Billions in Bond Portfolios May Soon Evaporate
Muni and junk bond investors rush in when it may be the worst time

By Bob Stokes
11/15/2012 6:00:00 PM

Many who have recently rushed into muni-bonds fear the tax hikes that will be triggered if lawmakers go off the "fiscal cliff." Junk bond investors, on the other hand, want high yields. However, EWI sees financial danger ahead for bond portfolios. Learn why.

Filed Under: all the same market theory, credit rating, deflation, economic indicators, Elliott wave, Interest Rates, junk bonds, municipal bonds, risk appetite, Treasury bonds, treasury yields, U.S. Treasuries

Category: U.S. Economy


If You Think Bonds Are a Conservative Investment, Think Again
Bond investors beware of deflation's impact on yields

By Bob Stokes
8/29/2012 4:45:00 PM

Elliott Wave International believes that economic contraction is set to accelerate. What does deflation mean for bond yields in the months ahead?...
 

Filed Under: Bob Prechter, deflation, economic depression, economic indicators, Elliott wave, inflation, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates


Bonds' Long Decline: Will Yields Continue To Fall?
A recap of how EWI's analysis foresaw the 2011-12 reversal in the 30-year T-bond yield

By Nico Isaac
7/19/2012 5:00:00 PM

Ask yourself this: Were you prepared in early 2011 for the powerful reversal in 30-year T-bond yields? To be exact: From their Febrary 2011 peak, 30-year yields plunged 40%-plus to the historic lows we see today. One thing's for sure: Most of the mainstream analysts were NOT.

Filed Under: Bear market, fundamental analysis, inflation, social mood, U.S. Federal Reserve (the Fed), treasury yields, U.S. Treasuries

Category: U.S. Economy


What to Expect During the Coming Debt Collapse
Entire nations will likely default, learn what to do now

By Bob Stokes
7/10/2012 3:30:00 PM

Most of us can grasp how individuals, companies and even municipalities can go bankrupt. It's less easy to conceive how a nation can default on its obligations. But history proves that nation's can default on their debt. Learn what Elliott Wave International expects next...     

Filed Under: conquer the crash, credit crisis, debt crisis, debt downgrade, deficit, deflation, economic depression, economic indicators, Elliott Wave Theorist, great depression, Greek debt, history, junk bonds, municipal bonds, soverign debt crisis, U.S. Treasuries

Category: U.S. Economy


Bonds and the Era of Deflation: A Safe Alternative to Stocks?
Special Report: A just-published 10-page urgent warning to bond investors

By Bob Stokes
6/7/2012 5:45:00 PM

The bull market in bonds has been going on for decades. The most recent bond investing craze merely heaped more icing on the cake. In fact, the interest rate on the Treasury's 10-year note has just fallen to the lowest level in U.S. history. Will bond investors continue to be rewarded?...

Filed Under: debt, deflation, economic depression, Elliott wave, Interest Rates, junk bonds, market forecasts, municipal bonds, risk management, safe haven, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates


Special Report from Prechter: 10 Pages on the Most Underreported Financial Story of 2012
It's time for the blunt language you'll read in this report

By Robert Folsom
6/7/2012 12:30:00 PM

But what is even MORE astonishing is how universally UNEXPECTED this crash in yields has been. Since 2008, the entire Wall Street-Economist-Media complex has predicted higher yields and inflation, based on two reasons...

Filed Under: credit rating, Elliott wave, Interest Rates, junk bonds, Robert Prechter, safe haven, treasury yields, U.S. Treasuries

Category: U.S. Economy


Have You Checked Your G.M. Stock Lately? (Yes, You're Still a Shareholder)
Will taxpayers see more losses on their GM investment?

By Bob Stokes
6/5/2012 4:45:00 PM

In 2012, we the people still own 500 million G.M. shares. And General Motors' share price needs to reach $51 just for us to break even. But...

Filed Under: bailouts, conquer the crash, debt crisis, deflation, economic indicators, Elliott wave, fundamental analysis, gross domestic product (GDP), stimulus package, stock indexes, Troubled Asset Relief Program (TARP), Troubled Asset Relief Program (TARP), U.S. Treasuries

Category: U.S. Economy


German Bund Yields Drop to Record Lows: Enjoy It While It Lasts
Can you apply a method like Elliott to forecasting bonds?

By Vadim Pokhlebkin
5/7/2012 9:15:00 PM

Bonds are a stepchild of the financial news world. Stocks, forex, energy, commodities -- all those markets get their spotlight many times a day on financial TV and in other media. Bonds, not so much. Bonds are complicated. For starters, there are lots of different bonds: Treasury, sovereign, agency, municipal, corporate; high-grade and high-yield (a.k.a. junk), etc. Then you have bond prices and bond yields; when one goes up, the other one goes down… Now multiply that across a dozen different nations. There is a lot going on.

Filed Under: Bear market, debt, diversification, Elliott wave, Elliott Wave trading, europe, European debt crisis, eurozone, Interest Rates, safe haven, trade targets, U.S. Treasuries

Category: Interest Rates


U.S. Bonds: Loved By No One... But Outperforms Them All. Learn Why
Newsflash: U.S. bonds outperform U.S. stocks! Another investment theme EWI got right -- here's how

By Nico Isaac
1/12/2012 4:45:00 PM

On the financial playground, long-term bonds are generally the last picked for the winning team -- well behind equities, commodities, high-yield (junk) bonds, even the barely established emerging markets. The reason being: the amount of time it takes to actually reap the fruits of your return. BUT, as a January 5, 2012 CNBC articlereveals, the asset that supposedly nobody loves has outperformed them all.

Filed Under: conquer the crash, credit crisis, debt, debt crisis, deflation, Elliott wave, emerging markets, hyperinflation, inflation, Interest Rates, liquidity, Robert Prechter, QE2, quantitative easing, social mood, Treasury bonds, U.S. Federal Reserve (the Fed), U.S. Treasuries

Category: U.S. Economy


U.S. Treasuries: Not the Butt of the Financial Joke Anymore
Treasuries outperform U.S. stocks! Another trend EWI got right -- here's how

By Nico Isaac
11/1/2011 2:30:00 PM

U.S. treasuries have long since been the butt of the financial joke, ridiculed for being worth little more than the paper they're issued on. The idea being: once you factor in early redemption penalties and inflation, the interest payments on long- or even short-dated securities often outweigh the capital gains. Not Anymore.

Filed Under: Robert Prechter, cash, conquer the crash, credit crisis, emerging markets, inflation, investment decisions, junk bonds, Robert Prechter, S&P 500, Treasury bills (T-bills), Treasury bonds, U.S. Treasuries

Category: Stocks


A Rising Market Won't Stop the "Economic Rot" Beneath
Are you prepared for when the "disconnect" between the market and economy reconnects?

By Bob Stokes
10/12/2011 5:30:00 PM

Today's stock market has plenty of cheerleaders -- even as the rot spreads throughout the economy. Real estate and homebuilding sectors alike continue to decline in the wake of the mortgage meltdown. Municipalities continue to have growing budget problems. We're not talking about a "small town" bankruptcy, either...

Filed Under: debt crisis, economic depression, Elliott Wave Theorist, housing prices, investor psychology, municipal bonds, U.S. Treasuries

Category: U.S. Economy


Robert Prechter Explains The Fed, Part III
The world's foremost Elliott wave expert goes "behind the scenes" on the Federal Reserve

By Vadim Pokhlebkin
10/10/2011 11:30:00 AM

This is Part III, the final part of Elliott Wave International's series "Robert Prechter Explains The Fed: The world's foremost Elliott wave expert goes 'behind the scenes' on the Federal Reserve."

Filed Under: Club EWI, deflation, inflation, monetary policy, monetization, quantitative easing, Robert Prechter, U.S. Federal Reserve (the Fed), U.S. Treasuries

Category: U.S. Economy


Will the Next Big Economic Report Move the Stock Market?
...or does the market have "a law of its own"?

By Bob Stokes
10/4/2011 4:30:00 PM

Sure, there are days when the economic news is "bad" and the market closes down. And vice versa. That's why most analysts and investors link bad news with down market days, and good news with up market days. But that doesn't mean one causes the other...

 

Filed Under: Robert Prechter, Elliott Wave Theorist, S&P 500, U.S. Treasuries

Category: U.S. Economy


Robert Prechter Explains The Fed, Part II
The world's foremost Elliott wave expert goes "behind the scenes" on the Federal Reserve

By Vadim Pokhlebkin
10/3/2011 11:30:00 AM

This is Part II of our three-part series "Robert Prechter Explains The Fed." "Let’s attempt to define what gives the dollar objective value. As we will see in the next section, the dollar is 'backed' primarily by government bonds, which are promises to pay dollars. So today, the dollar is a promise backed by a promise..."

Filed Under: Club EWI, deflation, hyperinflation, inflation, Robert Prechter, U.S. dollar, U.S. Federal Reserve (the Fed), U.S. Treasuries

Category: U.S. Economy


Will The Fed's "Operation Twist" Turn The Economy Around?
Why is Ben Bernanke's goal lower interest rates when EWI's Short Term Update's chart shows that 10-year bond yields are already at a five-decade low?

By Nico Isaac
9/20/2011 3:30:00 PM

Get out your dancing shoes, cuz this Wednesday (September 21) the Federal Reserve Bank is widely expected to "do the twist" -- "Operation Twist,"that is. The strategy (named for the Chubby Checker tune), was first introduced in the 1960s as a tried -- and failed -- method of using monetary policy to turn (or twist) the yield curve in a favorable, i.e. economic growth-inducing, direction.

Filed Under: Ben Bernanke, central banks, credit crisis, debt, Elliott wave, Robert Prechter, Short Term Update, Treasury bonds, U.S. Federal Reserve (the Fed), U.S. Treasuries

Category: U.S. Economy


U.S. Dollar: What Happens if Congress Doesn't Raise the U.S. Debt Ceiling?
"Fundamentally"-based arguments about the dollar's future can be very misleading

By Vadim Pokhlebkin
7/7/2011 2:00:00 PM

At EWI's Message Board, our subscribers and free Club EWI members ask us great questions daily. Here's a recent one: "Doesn't the U.S. Treasury's looming extension of the U.S. debt limit even higher than it is today mean more pressure on the dollar?" The question refers to a hot political issue: whether to raise the U.S. debt ceiling to yet another record high (over $14 trillion). That's a staggering figure, hence the question...

Filed Under: Elliott Wave trading, euro, forex trading, investor psychology, monetary policy, technical analysis, U.S. dollar, U.S. Treasuries

Category: Currencies


Living in the Post-QE World
Today's chart punctures the popular notion that stocks must fall if bond yields were to rise, post-QE2

By Nico Isaac
6/29/2011 11:30:00 AM

The countdown to a post-QE financial world is over in t-minus 10, 9, 8... Today, June 30 marks the end of the U.S. Federal Reserve's massive "quantitative easing" program. So the question is: Withe end-of-QE days be a world in which only stock-roaches and Twinkies survive? All jokes aside, many mainstream experts say life after the Fed's historic stimulus campaign will be markedly different for the stock and bond markets.

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, Federal Open Market Committee (FOMC), market forecasts, Nasdaq Composite, QE2, quantitative easing, Robert Prechter, S&P 500, safe haven, stock indexes, Treasury bills (T-bills), U.S. Federal Reserve (the Fed), U.S. Treasuries

Category: Stocks


Debt Man's Curve, It's No Place to Play
Why high debt does not necessarily mean high interest rates

By Jason Farkas
6/21/2011 2:15:00 PM

Sovereign debt is making the headlines these days, and here is a new way to look at the different risk levels of bonds -- the Debt Parabola, a.k.a. Debt Man's Curve.

Filed Under: emerging markets, eurozone, Greek debt, municipal bonds, pension funds, Robert Prechter, Sovereign Debt, subprime lending, Treasury bills (T-bills), U.S. Treasuries

Category: U.S. Economy


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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.