Japan was the world’s most admired economy in the ’80s. Then it was the world’s most despised economy in the ’90s. By 1995, economists pointed their fingers and laughed – the world’s most admired businessman had lost his left shoe. But now, much of the world is barefoot. The US inflation rate has been going [...]
Inflation versus deflation discussions are the rule for columnists, economists and BubbleTV. This false distinction is potentially harmful for investors and shoppers who think they must decide between the two, then act. Inflation and deflation act contemporaneously. The relative movement of what is inflating and what is deflating (e.g., common stocks vs. gas, bonds vs. [...]
What were they doing down by the pond? The Dow was flat yesterday. Gold rose $9 to $1,226. Has the dip in gold already come and gone? We were expecting lower stock prices…and lower gold prices too. Both went down earlier in the summer. But neither went down as much as we expected…nor stayed down. [...]
Remember our discussion of prices yesterday? Here at The Daily Reckoning, we have nothing against higher prices…and nothing against lower prices. It’s dishonest, misleading, and treacherously false prices that we don’t like. They send the wrong information. They may tell us that an item is plentiful, for example, when it is actually in short supply. [...]
In general, copper prices travel in the same direction as stock prices, as copper is… Source
Not much action in the markets yesterday. The Dow barely budged, but still ended the day in positive territory – the 7th day in a row of gains. Gold fell $6. Investors beware! Why? Because they are trapped. After 12 years without a real gain, they can’t afford to miss a major rally. So, they’re [...]
Volume fell across the board in U.S. equities and with the bad news from employment data, so did stock prices and U.S. index prices. We are once again in danger of blowing completely through the old support levels held in early May, and are likely headed lower as I discuss in my video post from [...]
To make money investing, you have to be ahead of the crowd…or at least looking for the story no one is telling. That was a tough task this morning. Suddenly, discussing the unthinkable – a double-dip recession and a retest of the March 2009 lows – is in vogue. Even readers are bored with the [...]
You wonder what we at Elliott Wave International see for real estate down the road? In Chapter 16 of his bestseller Conquer the Crash, EWI’s president Robert Prechter shows a historic comparative chart of U.S. stocks and U.S. real estate, showing that, "Real estate prices have always fallen hard when stock prices have fallen hard." So the [...]
Many infamous authoritarian regimes emerged during or after big bear markets… Source
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 neww sciencde of socionomics gives you answers. Original Source
It is not for nothing that seasoned stock market participants advise, “Sell in May and go away.” During the last 60 years, the month of May has delivered the fourth worst average monthly return on the calendar. But that’s only the beginning of the story. The three worst months are June, August and September. July [...]
One hallmark of Elliott Wave International’s analysis is that we debunk market myths to help our readers protect their finances. Here is Myth #1, "Earnings Drive Stock Prices" — an excerpt from our new free Club EWI eBook, "Market Myths Exposed." Enjoy! Original Source
The Depression contemporary Irving Fisher, whom Milton Friedman referred to as “the greatest economist of the twentieth century,” proclaimed in September 1929 that “stock prices are not too high and Wall Street will not experience anything in the nature of the crash.” He continued to be optimistic through 1930 and 1931, having invested his wife’s [...]
The present volatility will be resolved by a decisive move to the downside. Yesterday, the Dow moved 225 points into negative territory. Was that decisive? No. Not in itself. But it looks like the top is in. If so, stocks should be going down…down…down… Maybe for a year…maybe for 5 years…maybe for another 10 years… [...]
Buy early and hang on. Such was the investment process of Thomas Rowe Price. Price is most famous for founding the investment firm that bears his name. But he was a very successful investor in his own right. He was an advocate of buying obscure or out-of-favor growth stocks. In general, Price bought growth stocks [...]
From a speech given in Las Vegas on Saturday: On my recent trip to India, the financial press was very eager to hear what I had to say. They invited me on to their television shows. They interviewed me for magazines and newspapers. The local paper ran a full-page interview and sent out an artist [...]
At Casey Research, we eagerly awaited the release of quarterly reports from the companies in our favorite sector. Why? The gold price was substantially higher last quarter than during the comparable meltdown quarter of 2008, so we were anxious to find out if it would lead to a spike in profits. Gold and silver producers [...]
Stock prices have recovered about 60% of the decline from the 2007 high. The market has not always been so kind in past similar situations… Original Source
It was too late that I remembered that having margaritas for lunch was a bad idea, and I was now sleepy and argumentative, my eyelids drooping, when my eyes suddenly few open when I read the Bloomberg headline, “Leading Economic Indicators Index in US Rose 1.4% in March”. Wow! Bloomberg said, “The 1.4 percent increase [...]
