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‘Investors always want the most at the END of any advance’ On December 6, within two days of the Dow’s all-time high, the Elliott Wave Financial Forecast offered this unique insight: “Leverage is investors’ real-money way of expressing an extremely positive social mood, which prompts the thought, “I want more.” Investors always want the most… Read more Extremes at the Peak |
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Tesla’s Troubles – Is it Musk or is it More?
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Tesla’s Troubles — Is it Musk or is it More? Tesla tumbled 15% on March 10, its biggest single day drop in more than five years. Elliott Wave International’s March Global Market Perspective provides this insight: The world’s richest man, Elon Musk, is also more vulnerable than most people realize. In March 2023, when a… Read more Tesla’s Troubles – Is it Musk or is it More? |
Stock Market Excessive Overvaluation in 2025
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Valuations Are at the Furthest Edge of the Financial Solar System Figure 1 updates our history of year-end valuations for stocks of S&P companies on two bases: price to book value (Y axis) and dividend yield (X axis). I thought the year-end 2021 overvaluation would never be surpassed. But as you can see, the year-end… Read more Stock Market Excessive Overvaluation in 2025 |
Credit Spread Blow-out Ahead
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Another Blowout Ahead for Credit Spreads? Credit investors aren’t worried about a thing. They sneer at the possibility of a recession. A slew of corporate defaults? Nah. Complacency is so extreme that Elliott Wave International’s December Global Market Perspective warned that a tipping point might be at hand: Two of the most important credit-market sentiment… Read more Credit Spread Blow-out Ahead |
FED Follows the Treasury Rates
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Will the Fed Do an About-Face in 2025? Would you like the ability to predict what the Fed will do with its fed funds rate? Just watch the bond market. Elliott Wave International’s August Financial Forecast did just that and predicted the Fed would “play catch up.” The chart below shows the current fed funds… Read more FED Follows the Treasury Rates |
Defaults Jump to Highest Level Since 2010
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Debt, Defaults and Delinquencies (Oh My!) It’s a double whammy: U.S. credit card defaults jump to the highest level since 2010 as personal savings dry up. Expectations for the months ahead are even more glum. Elliott Wave International lay it out in their November Financial Forecast: The latest New York Fed Consumer Loan Survey reveals… Read more Defaults Jump to Highest Level Since 2010 |
2008 Will Look Like Child’s Play
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This is Going to Shock People!”: Avi Gilburt and Bob Prechter Chat “It’s going to make 2008 look like child’s play,” says ElliottWave Trader’s Avi Gilburt when discussing the precarious balance sheets of U.S. banks with Elliott Wave International’s Robert Prechter. In the just-released webinar “A Fireside Market Chat with Robert Prechter & Avi Gilburt,”… Read more 2008 Will Look Like Child’s Play |
Deflation in China
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Deflation in China: Impossible to Ignore Producer Price Index registers 22 straight months of decline Deflation’s grip on the world’s second largest economy is getting tighter. As Bloomberg noted on Sept. 9: China’s Deflationary Spiral Is Now Entering Dangerous New Stage The demand for goods has been weakening. Wages are stagnant. And, in addition to… Read more Deflation in China |
Don’t Count on FED
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Don’t Count on Fed to Rescue Economy: Here’s Why The Fed’s September lowering of the fed funds rate was greeted with widespread celebration on Wall Street. Yet, history shows that such moves by the Fed don’t always translate into a glowing economy. Elliott Wave International’s October Financial Forecast provides perspective: The August 2 issue forecast… Read more Don’t Count on FED |
Another Extreme Sentiment in Stocks
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Why Stock-Market Success Is Usually Only Temporary Here’s a sample of record sentiment readings for stocks Recession coming or not, people are still EXTREMELY bullish. Read this excerpt from the May 17, 2024 Elliott Wave Theorist: Record Sentiment Readings for Stocks Investors are enamored with stocks that pay little or nothing in the way of… Read more Another Extreme Sentiment in Stocks |