Higher Housing Prices: Prepare for the Flop to Follow the Flip
Will real estate history repeat?

By Bob Stokes
5/10/2013 5:30:00 PM

The National Association of Realtors reports that home prices are up 11.6% year over year. And that has a new surge of house flippers into the real estate market. If the housing market is poised for another dramatic downturn, almost no one sees it coming.

Filed Under: all the same market theory, Bob Prechter, Elliott Wave Theorist, herding, history, housing prices, market crash

Category: U.S. Economy

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Prechter: "I'd Love to Turn Long-Term Bullish Again"
The next buying opportunity is going to be the one of a lifetime.

By Bob Stokes
4/17/2013 4:45:00 PM

Hindsight shows that Robert Prechter's August 1983 then-radical forecast of a "once-in-a-generation money-making opportunity" did happen. Yet that was a two-part forecast, so this question remains: Is the "biggest financial catastrophe" that Prechter foresaw still unfolding, or has the Fed confined the damage to the 2007-2009 financial crisis?

Filed Under: all the same market theory, Bear market, bull market, consumer confidence, consumer price index, deflation, Elliott Wave Theorist, Gold, Robert Prechter, soverign debt crisis, U.S. STOCK MARKET, unemployment

Category: Classic Prechter

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Be On the Right Side of Risk-On Markets When the Herd Turns Risk-Off

By Gary Grimes
4/15/2013 2:30:00 PM

A growing number of investors – especially institutional investors – are positioning their money based on an observation The Elliott Wave Theorist published back in 2002. Asset classes such as stocks, bonds, commodities, metals and energy are more correlated than ever (the US dollar is inversely correlated). As far as we know, the Theorist was the first investment publication to talk about this phenomenon, likewise the first to give it a name ...

Filed Under: all the same market theory, Elliott Wave Theorist, risk appetite

Category: Stocks

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The Housing Recovery Rests on an Unstable Foundation
Yale's Robert Shiller says the recent rebound in home prices is "artificial"

By Bob Stokes
3/28/2013 5:30:00 PM

The housing market has gone from financial rubble to what some analysts describe as another bubble. It's true that home prices are still nearly 30% below their mid-2000s peak. Yet the recent surge has Robert Shiller of the Case-Shiller Home Price Index concerned. Learn why.

Filed Under: 1929 Stock Market Crash, all the same market theory, CNBC, commercial real estate, economic indicators, Elliott Wave Theorist, foreclosures, great depression, history, home sales, housing prices, quantitative easing, U.S. Federal Reserve (the Fed)

Category: U.S. Economy

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Why Your Life Insurance Company May Need Health Insurance
Learn what you can do to prepare

By Bob Stokes
3/13/2013 5:00:00 PM

In the second edition of Conquer the Crash, Robert Prechter writes: "Even traditionally safe insurance companies are massively exposed to losses during a major deflation because they invest in standard vehicles such as stocks, bonds and real estate. ... When insurance companies implode, they file for bankruptcy, and you can be left out in the cold. I know, because my insurance broker placed our insurance with ..."

Filed Under: all the same market theory, conquer the crash, deflation, Elliott wave, insurance industry, junk bonds, liquidity, personal finance, Robert Prechter, stock indexes

Category: U.S. Economy

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A Harsh Real Estate Lesson Goes Unlearned
Will no money down buyers have to 'KISS' their home goodbye?

By Bob Stokes
2/25/2013 4:30:00 PM

You might think the harsh lesson from the 2007-2009 financial crisis has been thoroughly learned. Think again. Incredibly, no-money-down mortgages have returned. Find out why highly-leveraged real estate investors should be keenly interested in what's around the corner for stocks. The February Elliott Wave Theorist is 120% longer than the standard issue and elaborates on what's likely ahead for the U.S. stock market.

Filed Under: all the same market theory, Elliott Wave Theorist, home sales, housing prices, market forecasts, Robert Prechter, U.S. STOCK MARKET

Category: U.S. Economy

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Global Deflation: Protect Your Wealth from What the Majority Do Not Expect
Shield your wealth before trusted facilities close their doors

By Bob Stokes
2/15/2013 4:15:00 PM

Last month the economy of the United States unexpectedly shrank by 0.1% in the fourth quarter. Deflationary forces are affecting more than just the American markets. In fact, they're even stronger across the pond. The euro zone's accelerating economic contraction should serve as a warning sign to anyone who believes the global economy is on the road to recovery. Opportunities to protect your wealth will close shut once a deflationary trend is well underway. Learn how to access safe storage facilities for your assets.

Filed Under: 1929 Stock Market Crash, all the same market theory, currency, deflation, European debt crisis, eurozone, great depression, gross domestic product (GDP), history, Robert Prechter, safe haven, Sovereign Debt

Category: Global Markets

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"Control of Interest Rates" is the Biggest Myth About the Federal Reserve
Bond investors need to prepare for a major change of trend

By Bob Stokes
1/31/2013 4:45:00 PM

Many observers of financial markets hang on the Federal Reserve's every word, and believe the central bank determines interest rates. However, the evidence shows that interest rates are not controlled by the Fed. Bond investors need to prepare for a major change in trend.

Filed Under: all the same market theory, central banks, conquer the crash, Elliott wave, herding, Interest Rates, market myths, Short Term Update, Treasury bonds, U.S. Federal Reserve (the Fed)

Category: Interest Rates

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The Most Noteworthy Takeaway from the 2013 World Economic Forum
A perfumed outlook doesn't mean the economy passes the smell test

By Bob Stokes
1/29/2013 5:30:00 PM

Harsh economic realities versus the disconnected and extreme economic optimism at Davos should serve as an alarm. But the World Economic Forum is not the only place where economic optimism is in overdrive. Get an independent perspective on global markets and economies.

Filed Under: all the same market theory, CNBC, debt crisis, economic indicators, Elliott wave, european central bank, European debt crisis, eurozone, FTSE, Greek debt, International Monetary Fund (IMF), sentiment

Category: Global Markets

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Luxury Spending: This Financial Indicator is a Real Masterpiece
Elliott wave analysis of the art market foretells social and economic change

By Bob Stokes
1/15/2013 5:30:00 PM

Luxury seekers push prices higher when they agree that a given commodity is valuable. The most over-the-top spending occurs near market tops. That's what happened in the 1630s at the height of Tulip Mania, the stock market top of 1929 and more recent speculative fever tops. Learn what current prices of luxury items signal about the financial future.

Filed Under: 1929 Stock Market Crash, all the same market theory, consumer spending, economic indicators, Elliott wave, financial forecast, herding, wisdom of crowds

Category: U.S. Economy

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Higher Education: A New Bubble Chapter in the History Books
The education deflation has just started

By Bob Stokes
1/11/2013 3:30:00 PM

Today's higher-education bubble started when attending college became the rule instead of the exception. These days it's common to see magazine cover headlines like "The 25 Best Universities" or other types of university rankings. All the while, tuition costs have soared, and so has the availability of federal student loans. Now there's evidence that a remarkable sea change may be underway.

Filed Under: all the same market theory, debt crisis, deflation, economic depression, Elliott wave, financial forecast, history, long-term trend, mania, unemployment

Category: U.S. Economy

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The Tortoise is About to Cross the Financial Finish Line
Slow and safe wins the race

By Bob Stokes
1/4/2013 5:00:00 PM

It's true that a Treasury-bill account yields next to nothing. But at this financial juncture, the well-known saying of humorist Will Rogers has never been more relevant: "I am more concerned with the return of my money than the return on my money." Learn why Bob Prechter says that embracing financial risk because interest rates are low can be a trap.

Filed Under: all the same market theory, Bear market, conquer the crash, derivatives, Elliott wave, history, Interest Rates, investment strategy, long-term trend, market forecasts, mutual funds, personal finance, risk management, Robert Prechter, safe haven, social mood, stock indexes, Treasury bills (T-bills), treasury yields

Category: Classic Prechter

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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

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The Current Market Trend is a Stock Picker's Nightmare
Stocks are moving in sync

By Bob Stokes
11/16/2012 3:00:00 PM

Most investors would do well to pick the right stocks during a rising market, much less a slumping one when, say, about 75% of stocks follow the main indexes. Even so, some investors will try to figure out which stocks belong to the winning 25%. However, be aware that the broad market may be entering a period when falling stocks outnumber gainers by an even wider margin.
 

Filed Under: 1929 Stock Market Crash, all the same market theory, Bear market, deflation, Elliott Wave Theorist, market forecasts, S&P 500

Category: Stocks

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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

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U.S. Markets: The Flow of Excessive Liquidity Cannot Be Endless
Prices of risk assets correspond to liquidity flow

By Bob Stokes
10/8/2012 6:00:00 PM

Loose money has flowed into financial assets. Prices have risen as institutional investors employ leverage of 30x and higher. The flow of excessive liquidity cannot be endless. So what happens to risk-asset prices when that flow starts to dry up? Take a look at two charts.

Filed Under: all the same market theory, diversification, Elliott wave, hedge funds, liquidity, market forecasts, quantitative easing, U.S. Federal Reserve (the Fed), U.S. STOCK MARKET, volume

Category: Stocks

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High-Frequency Trading and the Next Market Panic
Market fear will spread like an out-of-control wildfire

By Bob Stokes
9/26/2012 4:30:00 PM

Even before computers, market fear could pull prices down much faster than optimism pushed them up. Now, imagine modern computer trading speed combined with old-fashioned market fear, like what's described on...

Filed Under: all the same market theory, Bear market, Elliott wave, market crash, market forecasts, Robert Prechter, U.S. STOCK MARKET

Category: Stocks

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Most-Owned Stocks Among Institutions Are In a Bear Market
The underestimated downside of over-leveraged stock indexes

By Bob Stokes
9/17/2012 4:45:00 PM

When the popular indexes like the S&P 500 and the NASDAQ start to catch up on the downside, the descent will likely unfold with speed. That's because, when fear is combined with highly leveraged positions, the big money can...

Filed Under: all the same market theory, Bear market, diversification, Elliott Wave Theorist, hedge funds, investor psychology, liquidity, market forecasts, momentum, technical indicators, U.S. STOCK MARKET

Category: Stocks

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Triple Top in the Stock Market: Why Bears Love This Formation
The waiting game may soon be over

By Bob Stokes
9/10/2012 5:45:00 PM

The Dow Industrials have more than doubled since that low, and is now within a thousand points of its October 2007 all-time high. Stock market bears have had to exercise the proverbial patience of Job. Will the waiting game soon be finally over? Well, let's recall a few simple facts...
 

Filed Under: all the same market theory, Bear market, Elliott wave, mania, market forecasts, S&P 500, Short Term Update, technical analysis

Category: Stocks

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Global Economies and World Financial Markets: How the Big Disconnect Will End
Find out what happens when the two meet

By Bob Stokes
9/5/2012 3:45:00 PM

Will the disconnect between global economies and financial markets continue? EWI believes the answer is "no." Overleveraged financial markets will suffer the fate of overleveraged global economies. Keep in mind: The next financial crisis may start outside of America, so more than ever you need to... 
 
 

Filed Under: all the same market theory, ASX All Ordinaries, Bank of England, Bank of Japan, CAC40, DAX, Dow Jones Industrial Average (DJIA), economic depression, Elliott wave, emerging markets, euro stoxx 50, europe, european central bank, european markets, financial forecast, Greek debt, Indian markets, market crash, market forecasts, Nasdaq Composite, New York Stock Exchange (NYSE), Nikkei, S&P 500, SENSEX, Shanghai Composite Index, soverign debt crisis, Taiwan index, U.S. STOCK MARKET, world central banks

Category: Global Markets

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