Elliott Wave InternationalmyEWISocioniomics.Net

An Economic Earthquake Shakes U.S. Municipalities
"California dreaming" turns into a Golden State nightmare

By Bob Stokes
5/20/2013 5:15:00 PM

Municipalities have borrowed and spent for decades. A substantial number are going broke. The economic earthquake at the state and local level is part of an even larger seismic shift.

Filed Under: debt crisis, deflation, economic indicators, Elliott wave, housing prices, municipal bonds, Robert Prechter

Category: U.S. Economy

The Lurking Danger Behind Ultra-Low Interest Rates
The quest for higher yield can lead to a damaged portfolio.

By Bob Stokes
4/22/2013 5:30:00 PM

Risk-averse investors who depend on fixed income have been hurt by ultra-low interest rates. To make ends meet, many resort to riskier vehicles like bonds. Some fixed-income investors have been sold on the idea that bonds are relatively safe compared to stocks. But The Wall Street Journal recently noted that, "Safety has rarely been more expensive -- or more dangerous." Learn about two risks that bond investors currently face.

Filed Under: Elliott wave, Interest Rates, junk bonds, money markets, municipal bonds, Robert Prechter, Treasury bonds, treasury yields, U.S. STOCK MARKET

Category: Interest Rates

Economic Reality Takes a Back Seat to Investor Irrationality
Following the investment crowd can be damaging to your portfolio

By Bob Stokes
1/18/2013 5:15:00 PM

The United States faces what a former Treasury Secretary calls a "debt bomb." Yet, investors continue to plow money into risk-assets, like stocks and junk bonds. Learn what Bob Prechter says about irrational investment behavior and its likely outcome.

Filed Under: bloomberg, Bob Prechter, CNBC, debt crisis, Elliott wave, herding, investor psychology, junk bonds, municipal bonds, sentiment, stock indexes, Treasury bonds

Category: U.S. Economy

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

Gargantuan and Growing: The U.S. Debt Figure You've Probably Never Heard Of
The widely reported $16.1 trillion federal debt is a drop in the bucket

By Bob Stokes
11/27/2012 5:30:00 PM

Financial transparency is a must for U.S. publicly traded companies. But if the federal government had to abide by those same regulations, more Americans would know that the often-reported $16.1 trillion federal debt doesn't come close to the truth about the nation's liabilities.

Filed Under: credit rating, debt crisis, deflation, economic indicators, Elliott wave, municipal bonds

Category: U.S. Economy

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

Unsuspecting Bond Fund Investors Are Set Up for a Shock
Why risk in the rebalanced portfolio is ramping higher

By Bob Stokes
9/7/2012 5:00:00 PM

You can learn about a striking parallel between the bond market of 1929-1932 and today and what to expect next...

Filed Under: deflation, diversification, economic indicators, Elliott Wave Theorist, Interest Rates, investment strategy, investor psychology, junk bonds, market forecasts, money markets, municipal bonds, mutual funds, sentiment, Treasury bonds, treasury yields

Category: Interest Rates

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

Largest City Bankruptcy Ever: Stockton Will Not Be Alone
Too much borrowing and spending will doom other municipalities

By Bob Stokes
6/27/2012 4:30:00 PM

A recent issue of the The Elliott Wave Financial Forecast observes that "Muni investors have so far shrugged off the increased risk of defaults." Complacency is a financially dangerous mind-set right now. The financial dominoes are all lined up, and it appears the invisible finger has just nudged the first domino...

Filed Under: Club EWI, commercial real estate, conquer the crash, debt, deficit, deflation, economic depression, economic indicators, Elliott wave, home sales, housing prices, municipal bonds, pension funds

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

Towering Economic Cumulus: U.S. Senator Says "Our State is Broke"
The ugly financial truth about Illinois and municipalities nationwide

By Bob Stokes
3/19/2012 5:15:00 PM

"Investors who wait... before acting will be too late. We have to anticipate developments, and the only way we can do that is to use tools that reveal signs of approaching trend change." See the towering economic cumulus clouds that we see so you can prepare for what's ahead...

Filed Under: conquer the crash, credit crisis, debt, debt crisis, deflation, municipal bonds, safe haven

Category: U.S. Economy

U-Plighted States of America: More U.S. Cities Teeter On the Edge of Bankruptcy
Robert Prechter's Conquer the Crash foresaw a failure in muni bonds to keep states afloat

By Nico Isaac
3/13/2012 6:00:00 PM

From Miami to Phoenix; New York to California -- a growing wave of debt is forcing many once-thriving municipalities onto the edge of bankruptcy. And in the case of Jefferson County, Alabama -- which filed the largest Chapter 11 case in U.S. history last November -- right over that edge. So, was there a way to identify the pre-conditions of the muncipal bond crisis before it occurred? Yes.

Filed Under: Bob Prechter, conquer the crash, municipal bonds, Robert Prechter, Robert Prechter

Category: U.S. Economy

If the Economy's "Recovering," Why is the Largest-Ever U.S. City Facing Bankruptcy?
What's really going on?

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

As pundits chatter about an economic recovery, municipalities are facing bankruptcy - including the largest-ever U.S. city. What's really going on?...

Filed Under: credit rating, debt downgrade, economic depression, foreclosures, home sales, junk bonds, municipal bonds

Category: U.S. Economy

"Safe" Municipal Bonds: A Buy Signal for 2012?
"...the evidence continues to mount that a change for the worse is underway."

By Bob Stokes
1/20/2012 4:45:00 PM

Investors believe municipal bonds are safe, but the evidence suggests that a change for the worse is underway. That evidence includes...

Filed Under: financial forecast, municipal bonds, mutual funds, pension funds

Category: U.S. Economy

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

If This Happened to 3 Big Banks, Is Your Bank Next?
Learn specific ways to protect your "nest egg"

By Bob Stokes
9/27/2011 5:15:00 PM

What about the safety and stability of the banking system? The September Elliott Wave Theorist states...

Filed Under: conquer the crash, credit rating, municipal bonds, Robert Prechter, banks

Category: U.S. Economy

Austerity from State Capitals: What's Around the Corner?
Whack Whack Here and a Whack Whack There, Everywhere a Whack Whack

By Bob Stokes
7/5/2011 5:30:00 PM

States and cities took on large obligations when economic times were good, on the assumption that they'd have enough revenue to pay those bills in the future. But now many of those bills are due and they don't have the funds. The economy went south. To extrapolate the present into the future is unwise because trends change. You need the best method for anticipating major trend changes.We believe that best method is...
 

Filed Under: credit crisis, deficit, economic depression, municipal bonds, unemployment

Category: U.S. Economy

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

Municipal Bond Investors are "Blind-sided by Bad News"
Is Bankruptcy in the "Congressional Cards" for Some States?

By Bob Stokes
2/3/2011 4:45:00 PM

Before the financial debacle began in 2007, who could imagine that Congress would have to decide whether to spare states from bankruptcy?  Almost no one.  But please note -- the key word is "almost"...

Filed Under: bailouts, conquer the crash, economic depression, municipal bonds, pension funds

Category: U.S. Economy

The Day The Munis Died, The Levy Was Dry
Bob Prechter's Conquer The Crash outlined the state budget crisis we see today

By Nico Isaac
1/24/2011 4:45:00 PM

As the cross-country municipal budget crisis grows more dire with each passing month, the solutions to generating revenue are growing even more drastic. Fact: One New York politician recently proposed legalizing the banned sport of steel cage Ultimate Fighting. The logic being: Everyday people are gonna pay good money to see the snot get knocked out of others while they themselves suffer daily financial beat-downs.

Filed Under: conquer the crash, credit crisis, municipal bonds, pension funds, Robert Prechter

Category: U.S. Economy

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