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Bears Continue to Take a Giant Bite Out of Apple
Our charts reveal why professional analysts never saw the 40% freefall in Apple shares coming.

By Nico Isaac
4/18/2013 5:30:00 PM

Last September, with Apple Inc. shares soaring into the outergalactic $700 region, the mainstream experts tightened their grip on the upside. But instead of going to the moon, AAPL crashed back to earth in a 40% selloff to the 16-month lows we see today. One question remains: How could the professional analysts have gotten it so wrong?

Filed Under: Bear market, Bob Prechter, Elliott wave, Elliott Wave Theorist, herding, mutual funds, Robert Prechter

Category: Asian Markets


As Dow Climbs to Record High, Money Managers Underperform
Most investors buy stocks "for the long run" at just the wrong time

By Bob Stokes
3/7/2013 5:30:00 PM

As the Dow Industrials climb to an all-time high, most professional money managers lag the broad indexes. This is an occurrence that's common to past bull runs. Also, private investors almost always underperform versus the main indexes. Learn what those who work in the back offices of brokerages know.

Filed Under: CNBC, Dow Jones Industrial Average (DJIA), Elliott Wave Theorist, herding, history, market forecasts, mutual funds, Robert Prechter

Category: Stocks


Stock Market Lesson: "Institutional Investors Say a Crash Can't Happen"
Even professional investors can be radically wrong

By Bob Stokes
2/4/2013 4:45:00 PM

Even those who head large financial institutions can be way off the mark with financial assessments. That was the case around the 1929 stock market top and other historical market milestones. Market history may repeat as prominent Wall Street figures sing from the same songbook. Learn why it's an important time to be an independent-minded investor.

Filed Under: 1929 Stock Market Crash, CNBC, Elliott wave, financial forecast, herding, history, investor psychology, mania, market crash, market forecasts, mutual funds, risk management, sentiment, U.S. STOCK MARKET, Wall Street

Category: Stocks


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


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 Happens After Stock Mutual Funds Get Fully Invested
Stock mutual fund managers are almost "all in"

By Bob Stokes
8/9/2012 3:45:00 PM

There's a never-ending stream of chatter about the stock market. Opinions you hear from money managers and other financial professionals seem to change week to week. But, the best way to know what the "big money" thinks is to...

Filed Under: cash, Elliott wave, hedge funds, investment strategy, mutual funds, pension funds, U.S. STOCK MARKET

Category: Stocks


Day of Reckoning Approaches for Public Pension and Hedge Funds
Learn how to protect your portfolio in the tumultuous financial times ahead

By Bob Stokes
7/20/2012 4:45:00 PM

Make no mistake; the buying opportunity of a lifetime is ahead. As an investor, your goal is to be ready for it. Before then, U.S. markets will likely experience severe turmoil, and most investors will throw in the towel (that is, if the markets don't knock them out first). Many investors had a similar mind-set as stocks were approaching...

Filed Under: buy and hold, Elliott wave, hedge funds, herding, investment decisions, investment strategy, market forecasts, mutual funds, pension funds, personal finance, risk management, stock indexes

Category: Stocks


S&P 500: Sound and Fury for What?
After 12 years, investors came up empty handed. What's next?

By Bob Stokes
6/21/2012 2:00:00 PM

Ever since 2002, S&P 500 investors suffered through years of hand-wringing for nothing. The sad truth is...

Filed Under: buy and hold, CRB index, Fibonacci, investment decisions, long-term trend, market forecasts, mutual funds, S&P 500, volatility

Category: Stocks


Debt and Deflation: The Economic Valley Looks Deep
Signs of financial conservatism

By Bob Stokes
6/14/2012 5:30:00 PM

In normal economic times, keeping money under the mattress makes you an oddball. You're supposed to trust financial institutions. The basic savings account has zero risk. But in today's economic climate...

Filed Under: cash, conquer the crash, debt, deflation, money markets, mutual funds, safe haven, sentiment, stock indexes

Category: U.S. Economy


Big Money Poll: Will the 84 Percent Get It Right?
Stock market: most money managers are optimistic about the next 6-12 months

By Bob Stokes
5/18/2012 5:30:00 PM

Ten days before the most recent stock market top (May 1), an April 21 Barron's online headline read: "...Big Money Poll Finds Money Managers Are Bullish." But since the start of the month, the Dow Industrials has given back over 900 points. What gives?...

Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, investor psychology, mutual funds, Robert Prechter

Category: Stocks


With "35% of Assets in European Holdings," Is Your Money Market Fund Safe?
Bernanke says U.S. money markets "remain structurally vulnerable"

By Bob Stokes
5/4/2012 4:15:00 PM

Very rare exceptions aside, money markets have been safe. Learn why they now may be a lot less safe...

Filed Under: money markets, banks, central banks, credit crisis, debt crisis, deflation, economic depression, euro stoxx 50, europe, european central bank, European debt crisis, european markets, Federal Deposit Insurance Corporation (FDIC), mutual funds, stimulus package, U.S. Federal Reserve (the Fed)

Category: U.S. Economy


Stock Fund Favorites: When Darlings Get Dumped
How much like 1973 is today?

By Bob Stokes
4/23/2012 5:15:00 PM

If Apple and other fund favorites continue to lose their polish, what could that mean for the overall market? Well, let's see what market history teaches us...

Filed Under: Dow Jones Industrial Average (DJIA), Elliott Wave Principle, hedge funds, investment decisions, investment strategy, mutual funds, Nasdaq Composite, New York Stock Exchange (NYSE), pension funds, S&P 500

Category: Stocks


A New Face (Book) of This Tech Boom: Should You Follow The Herd?
EWI's Financial Forecast reveals whether the new dot-com bubble will avoid going bust

By Nico Isaac
2/3/2012 5:00:00 PM

On February 1, Facebook revealed plans to raise $5 billion in the biggest internet initial public offering ever. Soon after, the vast majority of Facebook's 845 million users clicked "like" on the soon-to-be IPO's wall post. So, the big question remains: Does this salvo of social networking and micro-blogging sites really have a new "face"? One, for that matter, that won't turn into a sad, frowning emoticon from another tech boom gone bust?

Filed Under: Bob Prechter, Elliott Wave Theorist, hedge funds, herding, mutual funds, Robert Prechter, S&P 500

Category: Stocks


"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 Hellish Year for Hedge Funds: What Do We See Ahead?
"2011 was a year of horrors" for high-rollers.

By Bob Stokes
1/4/2012 5:15:00 PM

"The reports of hedge-fund dysfunction are starting to appear; the size and number of disruptions will multiply many times in coming months...hedge funds will find themselves unable to..." Read the rest of this quote from the October Financial Forecast...

Filed Under: Elliott Wave Theorist, financial forecast, hedge funds, mutual funds, risk appetite

Category: Stocks


Let’s REITerate Why REITs, Dot-coms and IPOs aren’t the Best Bet Now, Part 1

By Susan C. Walker
9/16/2011 2:30:00 PM

It’s all about the yield, which, according to Morningstar Inc., has averaged about 5.75% over the past 20 years for equity REITs. So, what’s not to like about REITs?

Filed Under: Bear market, commercial real estate, mutual funds, Robert Prechter

Category: Stocks


Are There "Safe Havens" in This Uncertain Financial World?
Discover Robert Prechter's Updated Answer in the Latest Theorist

By Bob Stokes
6/28/2011 6:15:00 PM

The fact that a substantial percentage of U.S. based money market funds have holdings in European banks doesn't mean a given money market fund will suffer a loss. Yet exposed money market funds may be at risk if the sovereign debt crisis escalates...

Filed Under: conquer the crash, Elliott Wave Theorist, European Union (EU), Greek debt, Irish debt crisis, liquidity, mutual funds, Robert Prechter, safe haven, soverign debt crisis

Category: U.S. Economy


Is Your Pension Fund "Going for Broke"?
Can You Count on Your Pension Fund?

By Bob Stokes
5/25/2011 9:45:00 AM

The investment officers who oversee those funds clearly are not afraid of risky investments. They've jumped into them with both feet...All is well when most financial markets are rising. But what if...

Filed Under: cash, diversification, market forecasts, mutual funds, pension funds, sentiment, stock indexes

Category: Stocks


Current Echoes of the Old Mania
EWI's May Financial Forecast reveals whether these familiar notes are the sounds of a new bull market

By Nico Isaac
5/11/2011 12:15:00 PM

In the decade leading to the end of the Great Asset Mania in 2007, a rising tide of credit expansion drove many major financial market trends in remarkable harmony. Yet in 2009 this correlation seemed to diverge: stocks, precious metals, and oil moved contra-cyclically. But today, the trend in those markets is aligned once again.

Filed Under: bull market, credit crisis, Dow Jones Industrial Average (DJIA), gold futures, mania, market forecasts, mutual funds, New York Stock Exchange (NYSE), silver, U.S. dollar, U.S. Treasuries, unemployment, Wall Street

Category: Stocks


The Siren Song of the Stock Market: Will You Be Seduced?
Only a Relative Few Can Resist the Sweetness of the Sound

By Bob Stokes
4/19/2011 12:15:00 PM

The power of collective psychology reaches far and wide, and is no respecter of persons. The market technician is as susceptible to the siren song as the fundamentalist. The "smart money" is taken in as quickly as the "dumb money." Traders and investors alike are seduced by the sweetness of the sound...
 

Filed Under: Campaign for Independent Thinking, Elliott Wave Theorist, mutual funds, Robert Prechter, sentiment

Category: Stocks


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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.