Inside the April 2009 European Financial Forecast ...

Taking a Hard Look

at the Survivability of the

European Union

The first question you have to ask yourself is, Why was the eurozone – the group of European nations that share the euro – created in 1999? What was so special about that year that made it possible?

Believe it or not, once you answer this question, you will understand not only what really holds the EU together, but also why (and when) its unity is most likely to be tested in the future.

You answer this question by plotting the recent major European social events on the chart of the DAX, Germany's main stock index. What you'll see is that, amazingly, every single major positive event in recent history occurred when stocks were rallying or near a top.

You can see this chart now, on page 2 of the April issue of EWI's European Financial Forecast. It explains at a glance why the tensions between member nations are flaring up again: With European stocks cut in half or more by this bear market, Europe's social mood is at the lowest point it's been in years.

What does it mean for European stocks? What does it mean for the future of the EU? The April European Financial Forecast answers these questions on 10 chart-filled pages:

• "You Are Here" – If you've been wondering just where in the larger Elliott wave pattern European stocks are right now, the "You Are Here" chart on page 3 makes it clear.
• The DAX: A Quick Lesson for Elliott Wave Students – How do you deal with the "slight imperfections" in the DAX's recent Elliott wave count?
• Market Psychology – Does the public's anger about the G20 meeting mark a bottom for Europe's stocks, or is the worst yet ahead of us?
• The Economy and Deflation: A Macro-scopic Flight to Safety – You must see this chart of the external liabilities of UK banks to understand the recent monumental shift in investor behavior.
• Cultural Trends – Government growth has been the only assuredly rising "trend" lately. Will it continue? Pages 9-10 give you the answer.

Tap into these insights right now via a RISK-FREE subscription to The European Financial Forecast (order below). Subscribe today, and you'll also get instant access to the still-valuable recently archived issues.