Elliott Wave International - Free Updates

Lenders and Borrowers "Just Say No" to New Credit

Bob Stokes — Thu, 16 May 2013 16:30:00

The desire of lenders to lend and of borrowers to borrow has shriveled dramatically. Interest rates have been historically low for years now, yet the economy is barely treading water. History shows that low interest rates are rarely bullish for the economy. Learn why.

The Lurking Danger Behind Ultra-Low Interest Rates

Bob Stokes — Mon, 22 Apr 2013 17:30:00

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.

As Home Equity Lines of Credit Surge, The Low-Interest Rate Trap is Set

Bob Stokes — Tue, 12 Mar 2013 18:00:00

Americans borrowed roughly $1-trillion against their homes in the decade leading up to the housing bubble burst. That dollar figure remains well above recent home equity loan levels, however, CNBC reports that home equity loans are expected to increase in 2013 as homeowners take advantage of low rates. Will a second wave of price declines in real estate come, just as most homeowners think the market has recovered from the first wave?

"Control of Interest Rates" is the Biggest Myth About the Federal Reserve

Bob Stokes — Thu, 31 Jan 2013 16:45:00

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.

The Trap is Set for High-Yield Bond Investors

Bob Stokes — Wed, 12 Dec 2012 17:45:00

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.

Unsuspecting Bond Fund Investors Are Set Up for a Shock

Bob Stokes — Fri, 07 Sep 2012 17:00:00

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

If You Think Bonds Are a Conservative Investment, Think Again

Bob Stokes — Wed, 29 Aug 2012 16:45:00

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

Do Rising Treasury Yields Signal An Economic Recovery?

Nico Isaac — Mon, 20 Aug 2012 17:00:00

Back in June-July, the mainstream financial experts were certain of one thing: "The next big move [in US Treasury yields] is lower, not higher." YET -- from their July bottom, 10-, and 30-year Bond yields have RISEN to their highest level in 3 months. Turns out, our joint-issue June 2012 Elliott Wave Theorist/Elliott Wave Financial Forecast foresaw a major snag in the long bond bull market ahead...

If You Have Money in Bond Funds, Mutual Funds or Pension Funds, Please Read This Now

Editorial Staff — Thu, 14 Jun 2012 16:30:00

When stocks crashed in 2008, investors found shelter in bonds. Most months of the financial crisis saw investors transfer billions from stock funds and into bond funds. Moreover, they did this against the advice of most high-profile experts and advisors, who have hated bonds for the past 10 years. Yet those betting against bonds have lost lots of money -- especially since 2009 -- even as investors holding bonds have gained.

All that is about to change, says Robert Prechter in a new urgent report for bondholders.

Bonds and the Era of Deflation: A Safe Alternative to Stocks?

Bob Stokes — Thu, 07 Jun 2012 17:45:00

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?...

German Bund Yields Drop to Record Lows: Enjoy It While It Lasts

Vadim Pokhlebkin — Mon, 07 May 2012 21:15:00

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.

Believe the Promise to Keep A Broken Promise?

Robert Folsom — Tue, 05 Apr 2011 17:00:00

What would you think of a "bond" that allowed the borrower to skip interest payments, with a promise to pay the interest later? If you think "That means the borrower promises to keep a broken promise," you're spot-on. Welcome to the world of payment-in-kind (PIK) bonds...

What's Behind The Recent Bond Market Rally?

Nico Isaac — Mon, 28 Feb 2011 16:45:00

Starting in early February, the long-dated securities sector was undergoing its longest slump since 2008. The 10-year Treasury note yield had soared 130 basis points from its October trough to hit a nine-and-a-half month high, while prices (which move opposite yields) were in losing streak central. And, according to the usual suspects, the big "fundamental" arrow in bond prices would continue to point DOWN.

Long-Term Bonds: The Best Possible Investment? Think Again

Nico Isaac — Tue, 21 Dec 2010 17:15:00

TREASURIES -- the very name conveys a thing that is secure, protected, and will appreciate over time. Otherwise, it'd be called something like "TRASHeries" or "Mattress Stuffers." Then, there's the official seal of the US Department of Treasury: its image of a scale and a key symbolize "balance" and "trust." And, finally, there's the mainstream economic experts who have it on good authority that long-term bonds increase in value during financial instability and uncertainty.

How a "Dull" Investment Can Be a Great Investment

Debbie Hodgkins — Wed, 08 Dec 2010 15:30:00

...I asked what kind of bonds they got into. “High-yield bond funds,” was the answer. What kind of bonds are these funds invested in? To this question I got blank stares. How long do you plan on staying in these funds? This got the reply I was afraid I'd hear: “Why would we get out when they are so much safer than stocks?” That's when my new interest in these once boring investments turned to fear -- for my friends.

The Next Major Disaster Developing for Bond Holders

Editorial Staff — Wed, 03 Nov 2010 11:15:00

Elliott wave analysis can warn you of trend changes when the rest of the investment public least expects a market reversal. With that in mind, we have created a new report for our free Club EWI members: "The Next Major Disaster Developing for Bond Holders." Enjoy this excerpt -- and for details on how to read this important report free, today, look below the excerpt.

Bernanke: Talking Inflation, Walking Deflation

Jason Lureman — Fri, 15 Oct 2010 13:30:00

Federal Reserve Board Chairman Ben Bernanke said on October 15 that the Fed is ready to start its next round of quantitative easing, if needed. But while Bernanke believes that the Fed's intervention will stimulate the economy, reduce unemployment and prevent deflation, Elliott Wave International's Senior Global Bonds Analyst Bill Fox believes that QE2 will do "nothing to alleviate this issue."

Out from the Financial Jungle Comes T-Bill Rex

Bob Stokes — Thu, 14 Oct 2010 16:15:00

One of the lowliest and often ignored creatures in the financial jungle is set to emerge triumphant...

Will Municipal Bonds "Ultimately Trap Investors?"

Bob Stokes — Tue, 12 Oct 2010 15:15:00

These financially uncertain times have higher levels of risk where there used to be very little. A conservative investor is one thing, while a conservative investment is another...

We All SAW Subprime, But Not All of Us LEARNED From It

Robert Folsom — Tue, 05 Oct 2010 13:00:00

It's been barely two years since we all saw exactly how a story like this must end. But this time it's even worse. Previously the toxic assets were based on subprime mortgages; now the toxic assets are based on subprime auto loans. Auto loans, dear reader...