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Requiem for a Heavyweight
GAINESVILLE, Ga. / November 18, 2010 -- One of Wall Street's go-to mantras is "Don't fight the Fed." But, lately, the Fed's punch has lost some, well, punch. And challengers are getting bolder. Politicians, the media and economists are much more vocal about their criticism of the Fed than ever before. But analysts at Elliott Wave International (EWI) forecasted the increased scrutiny long before quantitative easing came into existence: "Calls to audit the Fed, now considered somewhat of a fringe idea, will escalate," wrote EWI in 2009. By looking at the stock market as a reflection of society's mood, they observed, "After a decade of trying and failing to re-ignite the bull market, the Fed still thinks it's running the show. We have never been more convinced that the Fed's latest strategy has zero chance of succeeding." Investors are now selling government debt trying to fight the Fed, but EWI's analysis says it's not worth the effort: "The Fed is not even in charge of interest rates. It is not the commander of the market but a puppet... Anticipating the Fed's decisions on the discount rate as if a drama were unfolding is a waste of time." Analysts at the Georgia-based financial forecasting firm say as society's mood sours and financial markets take a turn for the worse, it won't be long before the Fed could cease to exist.
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About Elliott Wave International (EWI) Based in Gainesville, Ga., EWI is the world's largest market forecasting firm that specializes in Elliott wave analysis, a form of technical analysis based on crowd psychology and pattern recognition. EWI's analysts provide around-the-clock forecasts of every major market in the world. Learn more at www.elliottwave.com.
Note to Media: For a copy of the Federal Reserve research mentioned in this tip or to arrange an interview with an analyst from Elliott Wave International, contact Alexandra Lienhard, 770-536-0309.