Elliott Wave InternationalmyEWISocioniomics.Net

The Lurking Danger Behind Ultra-Low Interest Rates
The quest for higher yield can lead to a damaged portfolio.

By Bob Stokes
4/22/2013 5:30:00 PM

Risk-averse investors who depend on fixed income have been hurt by ultra-low interest rates. To make ends meet, many resort to riskier vehicles like bonds. Some fixed-income investors have been sold on the idea that bonds are relatively safe compared to stocks. But The Wall Street Journal recently noted that, "Safety has rarely been more expensive -- or more dangerous." Learn about two risks that bond investors currently face.

Filed Under: Elliott wave, Interest Rates, junk bonds, money markets, municipal bonds, Robert Prechter, Treasury bonds, treasury yields, U.S. STOCK MARKET

Category: Interest Rates

Why Your Life Insurance Company May Need Health Insurance
Learn what you can do to prepare

By Bob Stokes
3/13/2013 5:00:00 PM

In the second edition of Conquer the Crash, Robert Prechter writes: "Even traditionally safe insurance companies are massively exposed to losses during a major deflation because they invest in standard vehicles such as stocks, bonds and real estate. ... When insurance companies implode, they file for bankruptcy, and you can be left out in the cold. I know, because my insurance broker placed our insurance with ..."

Filed Under: all the same market theory, conquer the crash, deflation, Elliott wave, insurance industry, junk bonds, liquidity, personal finance, Robert Prechter, stock indexes

Category: U.S. Economy

Economic Reality Takes a Back Seat to Investor Irrationality
Following the investment crowd can be damaging to your portfolio

By Bob Stokes
1/18/2013 5:15:00 PM

The United States faces what a former Treasury Secretary calls a "debt bomb." Yet, investors continue to plow money into risk-assets, like stocks and junk bonds. Learn what Bob Prechter says about irrational investment behavior and its likely outcome.

Filed Under: bloomberg, Bob Prechter, CNBC, debt crisis, Elliott wave, herding, investor psychology, junk bonds, municipal bonds, sentiment, stock indexes, Treasury bonds

Category: U.S. Economy

The Trap is Set for High-Yield Bond Investors
"Junk" bonds have that name for a good reason

By Bob Stokes
12/12/2012 5:45:00 PM

Low interest rates have attracted a swarm of yield hungry investors into junk bonds. Learn why these investors may have stepped into a soon-to-shut trap.
 

Filed Under: all the same market theory, credit rating, debt, Elliott wave, Interest Rates, junk bonds, risk appetite, Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates

Why Billions in Bond Portfolios May Soon Evaporate
Muni and junk bond investors rush in when it may be the worst time

By Bob Stokes
11/15/2012 6:00:00 PM

Many who have recently rushed into muni-bonds fear the tax hikes that will be triggered if lawmakers go off the "fiscal cliff." Junk bond investors, on the other hand, want high yields. However, EWI sees financial danger ahead for bond portfolios. Learn why.

Filed Under: all the same market theory, credit rating, deflation, economic indicators, Elliott wave, Interest Rates, junk bonds, municipal bonds, risk appetite, Treasury bonds, treasury yields, U.S. Treasuries

Category: U.S. Economy

Unsuspecting Bond Fund Investors Are Set Up for a Shock
Why risk in the rebalanced portfolio is ramping higher

By Bob Stokes
9/7/2012 5:00:00 PM

You can learn about a striking parallel between the bond market of 1929-1932 and today and what to expect next...

Filed Under: deflation, diversification, economic indicators, Elliott Wave Theorist, Interest Rates, investment strategy, investor psychology, junk bonds, market forecasts, money markets, municipal bonds, mutual funds, sentiment, Treasury bonds, treasury yields

Category: Interest Rates

What to Expect During the Coming Debt Collapse
Entire nations will likely default, learn what to do now

By Bob Stokes
7/10/2012 3:30:00 PM

Most of us can grasp how individuals, companies and even municipalities can go bankrupt. It's less easy to conceive how a nation can default on its obligations. But history proves that nation's can default on their debt. Learn what Elliott Wave International expects next...     

Filed Under: conquer the crash, credit crisis, debt crisis, debt downgrade, deficit, deflation, economic depression, economic indicators, Elliott Wave Theorist, great depression, Greek debt, history, junk bonds, municipal bonds, soverign debt crisis, U.S. Treasuries

Category: U.S. Economy

Bonds and the Era of Deflation: A Safe Alternative to Stocks?
Special Report: A just-published 10-page urgent warning to bond investors

By Bob Stokes
6/7/2012 5:45:00 PM

The bull market in bonds has been going on for decades. The most recent bond investing craze merely heaped more icing on the cake. In fact, the interest rate on the Treasury's 10-year note has just fallen to the lowest level in U.S. history. Will bond investors continue to be rewarded?...

Filed Under: debt, deflation, economic depression, Elliott wave, Interest Rates, junk bonds, market forecasts, municipal bonds, risk management, safe haven, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates

Special Report from Prechter: 10 Pages on the Most Underreported Financial Story of 2012
It's time for the blunt language you'll read in this report

By Robert Folsom
6/7/2012 12:30:00 PM

But what is even MORE astonishing is how universally UNEXPECTED this crash in yields has been. Since 2008, the entire Wall Street-Economist-Media complex has predicted higher yields and inflation, based on two reasons...

Filed Under: credit rating, Elliott wave, Interest Rates, junk bonds, Robert Prechter, safe haven, treasury yields, U.S. Treasuries

Category: U.S. Economy

If the Economy's "Recovering," Why is the Largest-Ever U.S. City Facing Bankruptcy?
What's really going on?

By Bob Stokes
3/5/2012 5:00:00 PM

As pundits chatter about an economic recovery, municipalities are facing bankruptcy - including the largest-ever U.S. city. What's really going on?...

Filed Under: credit rating, debt downgrade, economic depression, foreclosures, home sales, junk bonds, municipal bonds

Category: U.S. Economy

U.S. Treasuries: Not the Butt of the Financial Joke Anymore
Treasuries outperform U.S. stocks! Another trend EWI got right -- here's how

By Nico Isaac
11/1/2011 2:30:00 PM

U.S. treasuries have long since been the butt of the financial joke, ridiculed for being worth little more than the paper they're issued on. The idea being: once you factor in early redemption penalties and inflation, the interest payments on long- or even short-dated securities often outweigh the capital gains. Not Anymore.

Filed Under: Robert Prechter, cash, conquer the crash, credit crisis, emerging markets, inflation, investment decisions, junk bonds, Robert Prechter, S&P 500, Treasury bills (T-bills), Treasury bonds, U.S. Treasuries

Category: Stocks

Long-Term Bonds: The Best Possible Investment? Think Again
A free Club EWI report reveals why bonds do not provide shelter from the storm

By Nico Isaac
12/21/2010 5:15:00 PM

TREASURIES -- the very name conveys a thing that is secure, protected, and will appreciate over time. Otherwise, it'd be called something like "TRASHeries" or "Mattress Stuffers." Then, there's the official seal of the US Department of Treasury: its image of a scale and a key symbolize "balance" and "trust." And, finally, there's the mainstream economic experts who have it on good authority that long-term bonds increase in value during financial instability and uncertainty.

Filed Under: Campaign for Independent Thinking, conquer the crash, junk bonds, municipal bonds, Robert Prechter, U.S. Treasuries, Treasury bonds

Category: Interest Rates

How a "Dull" Investment Can Be a Great Investment
...until it isn’t any more. An important story for today's bond investors.

By Debbie Hodgkins
12/8/2010 3:30:00 PM

...I asked what kind of bonds they got into. “High-yield bond funds,” was the answer. What kind of bonds are these funds invested in? To this question I got blank stares. How long do you plan on staying in these funds? This got the reply I was afraid I'd hear: “Why would we get out when they are so much safer than stocks?” That's when my new interest in these once boring investments turned to fear -- for my friends.

Filed Under: junk bonds, municipal bonds, mutual funds, personal finance, Robert Prechter, U.S. Treasuries, Treasury bonds

Category: Interest Rates

Straight Talk With Bob Prechter, Part VII
A series of Q&As with EWI founder and president

By Editorial Staff
10/7/2010 4:00:00 PM

This is Part VII of our multi-part series of questions and answers with Robert Prechter, president of Elliott Wave International and the world's foremost authority on Elliott wave analysis. We are posting a new part every business day, so come back to elliottwave.com tomorrow for more!

Filed Under: Robert Prechter, junk bonds, municipal bonds, Treasury bonds

Category: Stocks

Municipal Bond Funds: Bleak Future
Elliott wave analysis suggests trouble ahead for muni bond funds.

By Jason Farkas
3/2/2010 2:30:00 PM

Many investors are blissfully unaware of the fact that many muni funds use leverage to pay high distributions. This added layer of risk makes these funds subject to the same liquidity concerns that plague other risky assets -- and as such, many muni bond funds act similarly to stocks.

Filed Under: municipal bonds, municipal bonds, Robert Prechter, U.S. Treasuries, S&P 500, gold futures, silver futures, junk bonds, emerging markets, Fibonacci

Category: U.S. Economy

Junk Bonds: How Quickly They Forget
Junk bond investors aren't always the best judges of risk.

By Jason Farkas
1/13/2010 5:30:00 PM

One measure of investor unease, the junk bond-to-Treasury spread, which soared during the height of the crisis, has fallen more than 75% from its high, indicating that investors are confident about corporate health. But junk bond investors aren't always the best judges of risk -- take a look at this chart.

Filed Under: junk bonds

Category: U.S. Economy

High-Yield Debt: Is It Time To Fill Your Trunk With Junk?

By Nico Isaac
7/8/2009 5:45:00 PM

In case you haven't had your radios tuned to W-A-L-L Street, junk is now music to the ears of the financial mainstream. To wit: In the first half of 2009, high-yield bonds saw a whopping 28.6% return, completely erasing the 25% shortfall from last year. Also, an estimated $41 billion in corporate debt was issued, an 81% increase from 2008...

Filed Under: junk bonds

Category: Interest Rates

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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.