Economists love to talk about exogenous shocks — events outside of the financial system that cause markets to move. But what if it’s just talk and not real at all?
What Does NOT Move Markets? Examining 8 Claims of Market Efficiency
March 2, 2010 by Leave a Comment
Surviving Deflation: First, Understand It
February 26, 2010 by Leave a Comment
Deflation is more than just “falling prices.” Robert Prechter explains why. The following article is an excerpt from Elliott Wave International’s free Club EWI resource, “The Guide to Understanding Deflation. Robert Prechter’s Most Important Writings on Deflation.” The Primary Precondition of Deflation Deflation requires a precondition: a major societal buildup in the extension of credit. […]
More Credit Default Swaps Means Trouble for European Debt
February 25, 2010 by Leave a Comment
Government debt is no longer just a problem for emerging countries. Portugal, Spain, France and Greece (as we have seen in recent weeks) are living in fear of credit default. Consequently, the value of their credit default swaps is skyrocketing.
Same Day. Same Event. Same Market. Different Story!
February 23, 2010 by Leave a Comment
Elliott wave analysts sometimes hear the criticism that patterns in market charts can be “open to interpretation.” Does that happen? Absolutely. (Although, there are tools an Elliottician can always employ to firm up the wave count.) But here’s the real question: What’s the alternative? Here’s Bob Prechter’s take on it.
What Chinese Malls Tell Us about the Economic Reality
February 22, 2010 by Leave a Comment
Investor expectations are decidely bullish right now, and many people expect an economic turnaround this year. What do the underlying economic conditions suggest? The Chinese mall “The Place” demonstrates the contrast between investor hope and economic reality.
Europe’s Return to Risky Investment
February 19, 2010 by Leave a Comment
Over 100 banks are opening soon, buying junk bonds is gaining popularity and emerging markets are the trendy investment. Sound familiar? Europe appears to be returning to some bad investment habits.
How Elliott Wave Principle Can Improve Your Trading
February 19, 2010 by Leave a Comment
Every trader and analyst has favorite techniques to use when trading. But where traditional technical studies fall short, the Wave Principle kicks in to show you high probability price targets and, just as importantly, how to distinguish high probability trade setups from the ones that traders should ignore.
11 Commonplace Market Views: True or Myth?
February 17, 2010 by Leave a Comment
Do you believe that earnings drive stock prices and that it’s enough to simply beat the market? Better think again, once you read how Elliott Wave International debunks these market myths.
Bob Prechter’s “Conquer The Crash”: Eight Chapters For Free
February 11, 2010 by Leave a Comment
When EWI President Robert Prechter sat down to write the first edition of “Conquer The Crash” in 2002, the idea that the United States would enter a period of what news authorities coined “economic Armageddon” several years later was unheard of. Anticipating the “sea change” that would come in the economic, political, and social landscape is the unparalleled achievement of Prechter’s best-selling book.
Robert Prechter on Herding and Markets’ “Irony and Paradox”
February 11, 2010 by Leave a Comment
Have you ever watched a dog interact with its owner? The dog repeatedly looks at the owner, taking cues constantly. The owner is the leader, and the dog is a pack animal alert for every cue of what the owner wants it to do. Participants in the stock market are doing something similar. They constantly watch their fellows, alert for every clue of what they will do next. The difference is that there is no leader. The crowd is the perceived leader, but it comprises nothing but followers. When there is no leader to set the course, the herd cues only off itself, making the mood of the herd the only factor directing its actions.
