The World Has Suddenly Surrendered to Mass Optimism. Should You?
History shows that at market extremes many of the most opinioned bears and bulls surrender to popular opinion. The market then moves violently AGAINST popular opinion.
By Editorial Staff
4/6/2012 12:15:00 PM
Consider this. A week after the Dow's all-time high in October 2007, Robert Prechter went on Bloomberg to describe "extremes that exceed 1929 or 1987...these are the harbingers of a change to the downside for the stock market." A week before the major low in March 2009, he went on CNBC to say "it's getting crowded on the bear side...we've been in a short position for a long time, I recommended that people get out of it." S&P futures traders were a record 98% bears (only 2% bulls) on the very day of the low Prechter went on TV to call for a major turn to the upside. In other words, people were telling you to sell at the worst possible time. What about now? Here's what WE think.
Filed Under: Bear market, Bob Prechter, bull market, Elliott wave, Elliott Wave Principle, Elliott Wave Theorist, Elliott Wave trading, herding, market crash, market forecasts, prechter, quantitative easing, Robert Prechter, S&P 500, stock indexes, stock market cycles, the fed
Category: Stocks
By Bob Stokes
3/26/2012 4:15:00 PM
A look at the performance of small-capitalization stocks is one way to tell whether investors are in the mood for risk taking. See a revealing chart...
Filed Under: Ben Bernanke, quantitative easing, risk appetite, stock indexes, Traders
Category: Stocks
By Nico Isaac
1/12/2012 4:45:00 PM
On the financial playground, long-term bonds are generally the last picked for the winning team -- well behind equities, commodities, high-yield (junk) bonds, even the barely established emerging markets. The reason being: the amount of time it takes to actually reap the fruits of your return. BUT, as a January 5, 2012 CNBC articlereveals, the asset that supposedly nobody loves has outperformed them all.
Filed Under: conquer the crash, credit crisis, debt, debt crisis, deflation, Elliott wave, emerging markets, hyperinflation, inflation, Interest Rates, liquidity, prechter, QE2, quantitative easing, social mood, Treasury bonds, U.S. Federal Reserve (the Fed), U.S. Treasuries
Category: U.S. Economy
By Bob Stokes
12/23/2011 4:45:00 PM
Many people say that the Federal Reserve will just keep "printing money." But to say that the government will just keep "stimulating" is to ignore the simple truth that institutions consist of people. Even people in authority come under the influence of prevailing psychology -- which today is one of increasing...
Filed Under: Ben Bernanke, debt crisis, deflation, Elliott Wave Theorist, great depression, monetary policy, monetization, QE2, quantitative easing, U.S. Federal Reserve (the Fed)
Category: U.S. Economy
By Bob Stokes
12/6/2011 5:15:00 PM
Even though the economy remains weak, the Fed has not announced additional quantitative easing. Has the central bank reached its monetary and political limit?...
Filed Under: banks, central banks, deflation, inflation, monetary policy, monetization, quantitative easing, social mood, stimulus package, U.S. Federal Reserve (the Fed)
Category: U.S. Economy
By Vadim Pokhlebkin
11/25/2011 9:00:00 AM
Inside EWI's forex-focused Currency Specialty Service, you won't find any discussions of how Ben Bernanke's rumored QE3 campaign, or another round of bailouts by the European Central Bank, might affect the US dollar, or euro, or pound. Here's what you will find -- take a look at these 4 charts...
Filed Under: bailouts, Elliott wave, Elliott Wave trading, euro, european central bank, European debt crisis, forex, forex trading, Japanese yen, quantitative easing, technical analysis, technical indicators, trading lessons, U.S. dollar
Category: Currencies
By Bob Stokes
11/16/2011 4:45:00 PM
Is this the point where Bernanke can no longer use Fed policy to "inflate at will"? Well, Robert Prechter says something "momentous" happened on September 21, 2011...
Filed Under: Ben Bernanke, central banks, deflation, inflation, monetary policy, QE2, quantitative easing, Robert Prechter, stimulus package, Treasury bonds, U.S. Federal Reserve (the Fed)
Category: U.S. Economy
Robert Prechter Explains The Fed, Part III
The world's foremost Elliott wave expert goes "behind the scenes" on the Federal Reserve
By Vadim Pokhlebkin
10/10/2011 11:30:00 AM
This is Part III, the final part of Elliott Wave International's series "Robert Prechter Explains The Fed: The world's foremost Elliott wave expert goes 'behind the scenes' on the Federal Reserve."
Filed Under: Club EWI, deflation, inflation, monetary policy, monetization, quantitative easing, Robert Prechter, U.S. Federal Reserve (the Fed), U.S. Treasuries
Category: U.S. Economy
Robert Prechter Explains The Fed, Part I
The world's foremost Elliott wave expert goes "behind the scenes" on the Federal Reserve
By Vadim Pokhlebkin
9/30/2011 2:15:00 PM
The ongoing economic problems have made the central bank's decisions -- interest rates, quantitative easing, monetary stimulus, etc. -- a permanent fixture on six-o'clock news. Yet many of us don't truly understand the role of the Federal Reserve. For answers, let's turn to someone who has spent a considerable amount of time studying the Fed and its functions: EWI president Robert Prechter. Today we begin a 3-part series...
Filed Under: Club EWI, deflation, Elliott wave, gold futures, monetary policy, monetization, quantitative easing, Robert Prechter, U.S. dollar, U.S. Federal Reserve (the Fed)
Category: U.S. Economy
By Bob Stokes
8/17/2011 11:15:00 AM
While he "stared down" that financial crisis, even J.P. Morgan would be no match for today's national debt. In 1907, the Wall Street legend gathered New York City's biggest bankers into his office and demanded that they had 10 minutes to...
Filed Under: central banks, conquer the crash, economic depression, history, monetary policy, New York Stock Exchange (NYSE), quantitative easing, Robert Prechter, U.S. Federal Reserve (the Fed)
Category: U.S. Economy
By Bob Stokes
8/2/2011 5:45:00 PM
During the past few years, the federal government followed Keynes' script by trying virtually everything it could to fix our weak economy. And what did we get in return?...
Filed Under: bailouts, central banks, Federal Deposit Insurance Corporation (FDIC), gross domestic product (GDP), monetary policy, quantitative easing, Robert Prechter, stimulus package
Category: U.S. Economy
By Bob Stokes
7/29/2011 5:00:00 PM
The Fed's easy money campaign has defined the front line of that "war on credit." The problem is that it just hasn't worked...
Filed Under: Robert Prechter, Elliott Wave Theorist, housing prices, monetary policy, QE2, quantitative easing, stimulus package, U.S. Federal Reserve (the Fed)
Category: U.S. Economy
By Bob Stokes
7/22/2011 2:45:00 PM
Some in the financial media argue that QE2 worked because the Fed has prevented a Japanese-like deflation. But is inflation alive and well? Keep the above chart in mind as you read...
Filed Under: Ben Bernanke, central banks, deflation, monetary policy, QE2, quantitative easing, Robert Prechter, stimulus package, U.S. Federal Reserve (the Fed)
Category: U.S. Economy
Living in the Post-QE World
Today's chart punctures the popular notion that stocks must fall if bond yields were to rise, post-QE2
By Nico Isaac
6/29/2011 11:30:00 AM
The countdown to a post-QE financial world is over in t-minus 10, 9, 8... Today, June 30 marks the end of the U.S. Federal Reserve's massive "quantitative easing" program. So the question is: Withe end-of-QE days be a world in which only stock-roaches and Twinkies survive? All jokes aside, many mainstream experts say life after the Fed's historic stimulus campaign will be markedly different for the stock and bond markets.
Filed Under: Dow Jones Industrial Average (DJIA), Elliott wave, Federal Open Market Committee (FOMC), market forecasts, Nasdaq Composite, QE2, quantitative easing, Robert Prechter, S&P 500, safe haven, stock indexes, Treasury bills (T-bills), U.S. Federal Reserve (the Fed), U.S. Treasuries
Category: Stocks
What Will Happen to the Stock Market When QE2 Ends?
Club EWI's free "Independent Investor eBook, 2011 Edition" offers you an unorthodox view of the Fed's quantitative easing program
By Vadim Pokhlebkin
6/27/2011 12:00:00 PM
Club EWI's free "Independent Investor eBook, 2011 Edition" offers you an unorthodox view of quantitative easing and its "effects" on stocks and the economy...
Filed Under: Ben Bernanke, Elliott wave, Federal Open Market Committee (FOMC), liquidity, market manipulation, monetary policy, monetization, Robert Prechter, QE2, quantitative easing, Robert Prechter, stimulus package, U.S. Federal Reserve (the Fed)
Category: Stocks
By Vadim Pokhlebkin
6/24/2011 5:15:00 PM
On Wednesday, June 22, the Federal Reserve Bank released its latest interest rates policy statement (no change). Afterward the Fed Chairman Ben Bernanke held a press conference, followed by a Q&A period. The financial media paid lots of attention to what Bernanke said. Our own Steve Hochberg -- editor of the Monday-Wednesday-Friday Short Term Update -- had this to say about Bernanke's press conference...
Filed Under: Ben Bernanke, economic depression, Elliott wave, Federal Open Market Committee (FOMC), gross domestic product (GDP), monetary policy, QE2, quantitative easing, recession, stimulus package, stock indexes, U.S. Federal Reserve (the Fed)
Category: Stocks
By Nico Isaac
6/6/2011 10:45:00 AM
True or False: The U.S. Federal Reserves quantitative easing (QE) policy has been to bond yields what a plastic lid is to a trick snake can. Once you open the lid, it's -- "POP!" -- and the toy snakes spring up and out? According to many mainstream financial experts, the answer to that question is a clear and definitive true.
Filed Under: bailouts, QE2, quantitative easing, U.S. Federal Reserve (the Fed), U.S. Treasuries
Category: U.S. Economy
By Vadim Pokhlebkin
4/13/2011 2:45:00 PM
Our subscribers and free Club EWI members sometimes ask us questions about the U.S. Federal Reserve bank "supporting the stock market." It's not a surprising question. But here at EWI we are all about "visual aids," namely charts. Think back to the recent past (2008), and take a look at this excerpt from Bob Prechter's January 2011 Elliott Wave Theorist...
Filed Under: Ben Bernanke, fundamental analysis, Greenspan, Robert Prechter, quantitative easing, S&P 500, stock indexes, U.S. Federal Reserve (the Fed)
Category: Stocks
Understanding the Fed
EWI's free eBook explains the common and misleading myths about the U.S. Federal Reserve Bank
By Vadim Pokhlebkin
4/12/2011 6:00:00 PM
What exactly is the function of the Fed? If it's to help the U.S. economy grow steadily, then how come in 2007-2009 we had the biggest stock market crash in decades followed by "the Great Recession" and a worldwide financial crisis? For answers, let's turn to someone who has spent a considerable amount of time studying the Fed and its functions: EWI's president Robert Prechter. This is an excerpt from a free Club EWI eBook...
Filed Under: 1929 Stock Market Crash, bailouts, Ben Bernanke, Robert Prechter, Campaign for Independent Thinking, Elliott wave, Greenspan, hyperinflation, inflation, market crash, market manipulation, monetary policy, monetization, Robert Prechter, quantitative easing, Robert Prechter, social mood, Troubled Asset Relief Program (TARP), U.S. Federal Reserve (the Fed)
Category: U.S. Economy
By Nico Isaac
3/30/2011 2:30:00 PM
On March 29, the sharpened bear claws officially came out of bond land. That day, yields on the 10-year Treasury note rose for a ninth consecutive session sending prices lower in the market's longest losing streak in over 20 years. And, according to the mainstream experts, one main factor was behind the powerful decline: namely, rumours that the Federal Reserve will cut short is second round of quantitative easing, a.k.a. QE2. Here, the following news items set the scene:
Filed Under: bailouts, monetary policy, quantitative easing, Treasury bonds, U.S. Federal Reserve (the Fed)
Category: U.S. Economy