Australia's Housing Market Soars, the Fundamentals in Ashes
by Nico Isaac
Updated: February 04, 2020
Does "Bad News" Drive Markets Down?
You just saw a clear answer from Australia's housing market.
So ... here's the better question: Does "news" drive markets at all? The simple answer is no. Investors who rely on news to make financial decisions are permanently a step behind.
Elliott Wave analysis anticipates trends and turns in markets, before they happen. It makes all the difference. For subscription information, follow the fast steps below.
Investors justify financial bubbles all the way to the top. This perilous psychology led to massive losses after the market peaks of 2000 and 2007. Now, in 2020, the same warning is showing up in the financial news.
Big negative social mood trends drive big market declines. These trends ALSO drive social conflict, even revolution. So in periods of big bear market declines, we see that monarchs also fall. Watch for yourself just how true this is.
Lots has been said about how unprecedented 2020 has been. From the financial markets' perspective, the fast bear market in February-March -- followed by a fast recovery -- certainly fit the bill. Watch our Financial Forecast co-editor touch on a few more points.