U.S. Real Estate: A 24% Problem

When houses are bought and sold as shelter, prices tend to be relatively stable. Yet, when houses are treated like speculative items, booms and busts become much more likely. ~ Tim McMahon, editor U.S. Real Estate: A 24% Problem "...24% of U.S. single family homes are owned by investors." By Elliott Wave International A big reason that U.S. home prices have skyrocketed is that big investors like corporations did a lot of buying. As a Redfin.com headline noted nearly two years ago (Feb. 16, 2022): Real Estate Investors Are Buying a Record Share of U.S. Homes Redfin defined an "investor" as any institution or business which purchases residential real estate. As Elliott Wave International has said, when houses are treated like stock certificates instead of shelter, prices can rise and fall just like with the stock market. The February 2023 Elliott Wave Theorist, a monthly publication which provides analysis of noteworthy financial and social trends, explained that … [Read More...]

Mini-Manias: Beware Short-Term Trading Frenzies – Like This One

Most investors know the meaning of a “mania,” i.e., the “Tulip Mania” of the 1600s and more recently, the mania surrounding technology stocks in the late 1990s, etc.
As you might imagine, these manias usually occur during rip-roaring bull markets.
Yet, some “manias” may unfold even during bear-market rallies, and when these “mini-manias” end, they can burn investors just as much as those full-blown bull market manias.

Why You Should Expect a Once-in-a-Lifetime Debt Crisis

The following article by Elliott Wave International looks at the possible impact of the building debt crisis. We’ve all heard about the massive problem of College debt created by the easy-money policies of the government. But today we are looking at the impact of the massive credit card debt.

Why Do Traders Really Lose Money?

We’ve all probably heard that “the odds are stacked against the small trader” when it comes to the stock market. That tends to push us toward investment tools like index funds. But what if the problem isn’t the market but our own brain? In today’s article, the writers at Elliott Wave International examine the psychological profile that turns winners into losers. Plus, 1 FREE course on how to help you stop self-sabotaging “good enough” trades.

Market Outlook May 31, 2023

On 12/28/2022 the NASDAQ bottomed at 10,213.29 since then it has soared about 27% to 12,971 as of this writing. This happened despite the media beating the gloom and doom drum of the "Debt Ceiling". John Authers of Bloomberg published an article … [Read More...]

Where is the Market Headed in May 2023

As we've been saying for a while now, the market is stuck in a pennant formation and will eventually have to break out one way or the other, and generally, when that type of breakout occurs, it is quite sharp. The index remains above its … [Read More...]

Silicon Valley Bank, Silvergate and “The Everything Bust”

Although FED "Assets" are still in record high territory, in percentage terms year-over-year (Y-o-Y) the money supply is falling. In other words, the money supply is smaller than it was a year ago. This is the biggest percentage decrease since … [Read More...]

Bull Trap or Market Consolidation?

At the end of last week, Chris Ciovacco recorded his weekly "Short-Takes" market analysis, and overall, things looked quite bullish. Most markets were above their moving averages, trends were rising, and things looked good. And then this week, … [Read More...]