Fear and uncertainty that drive a severe bear market are the same emotions which can set the stage for authoritarianism, in most any nation. Why do authoritarian tendencies emerge only during bear markets in stocks? Bob Prechter’s new science of socionomics gives you answers.
Deflation: How To Survive It
June 11, 2010 by Leave a Comment
The M3 money supply in the U.S. is contracting fast, and deflation is suddenly in the news again. It’s a good moment to catch up on a few definitions, as well as strategies on how to beat this rare economic condition. And who better to ask than EWI’s president Robert Prechter? Here’s a free excerpt from a collection of his most important essays on deflation.
Prechter Called the Uptrend ‘Out’ in April
June 9, 2010 by Leave a Comment
Even non-sports fans have heard by now about the recent debacle known as “Baseballgate” — with two outs in the ninth inning, the first base umpire called “SAFE” when the runner was clearly “OUT.” The missed call cost Detroit Tiger pitcher Armando Galarraga a perfect game. But the Biggest, Baddest Call of all was not made on a sports field. It was made in the field of finance — specifically on the stock market. To wit: The mainstream “umpires” of finance stood near first base, and in April made this emphatic call for the uptrend in stocks.
‘Defensive’ Stocks: Are They the Ticket in a Downturn?
June 3, 2010 by Leave a Comment
Approximately three out of four stocks go down in a bear market. This ratio doesn’t just apply to high beta names; historically, 75 percent of all stocks go down when the general market falls. On May 20, when the DJIA lost 376 points, 99 percent of stocks fell. Yet a financial TV host recommended “defensive” names the day after. Wouldn’t his viewers be better served if he said, “You may want to step aside for now”?
Bigger Than A ‘10% Correction’?
May 26, 2010 by Leave a Comment
Not a word was said about caution. Not a word was offered about even the possibility of a major trend change in the market…
The Federal Reserve Does NOT Control the Market
May 21, 2010 by Leave a Comment
As the world’s leading stock markets continue to play stomach-hockey with investors via one triple-digit turn after another, the mainstream community takes solace in this core belief: No matter how uncertain things become, the Federal Reserve can at any moment swoop in to set the economy right.
What Becomes of a Broken Stock Market?
May 18, 2010 by Leave a Comment
You know what a mystery the Dow’s 1,000-point drop on May 6 has been. Wall Street is looking for a smoking gun — a trader’s mistake, a computer glitch — but nothing definite has been found yet. If you’re familiar with Elliott wave analysis, last week’s shocking decline gets less mysterious.
Signs of Deflation You Might Not be Able to See Clearly
May 14, 2010 by Leave a Comment
Most people assume that they are investing in an inflationary world, because that’s what the Fed tells them it’s worried about. But deflationary forces continue to loom even though they are not so visible. Here are five that you might not be able to see clearly.
Prechter Describes The “Stunning Long-Term Elliott Wave Picture”
May 12, 2010 by Leave a Comment
This seems to paint a bullish picture: the stock market was in double-digit rally mode during 43% of the total calendar days in question…
