Growing Debt Accelerates Worldwide Economic Contraction
Big asset manager calls for 60% chance of global recession in the next 3-5 years.

By Bob Stokes
6/12/2013 4:30:00 PM

A big asset management firm says recessions come about every six years, and global debt has increased since the recession that began in 2007. So the firm has raised its estimate of a worldwide recession to over 60% in the next 3-5 years. But much of the world already appears to be facing economic challenges. Robert Prechter argues that "recession" is not the right word to describe the state of the global economy.

Filed Under: Bank of Japan, BRIC, CNBC, credit crisis, economic depression, economic indicators, Elliott wave, emerging markets, European debt crisis, Indian markets, liquidity, Robert Prechter, Shanghai Composite Index, Sovereign Debt, Wall Street, world central banks

Category: Global Markets

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Suburban Poverty Up Nearly 64%
If this is an economic recovery, what will the next contraction look like?

By Bob Stokes
3/25/2013 4:45:00 PM

New research shows that poverty has spread faster in the suburbs than the inner city. Many Americans still haven't recovered from the real estate bust. Unemployment and under-employment remain historically high. Robert Prechter writes, "The Fed is doing everything it can to try to keep the credit balloon inflated. But it’s failing, because the markets and the economy are certainly not zooming, despite all the QEs and 0% interest rates." In the new Elliott Wave Theorist, you'll find 11 charts. Six of them, accompanied by Prechter's unique commentary, show why Americans should brace themselves for a major change in the economy.

Filed Under: CNBC, debt, deflation, economic indicators, Elliott wave, foreclosures, housing prices, Interest Rates, liquidity, personal finance, quantitative easing, Robert Prechter, stimulus package, U.S. STOCK MARKET, unemployment

Category: U.S. Economy

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Has the European Central Bank Defeated the Sovereign Debt Crisis Once and For All?
A three-paneled chart reveals whether the critical precondition for recovery, consumer borrowing, is underway in Europe.

By Nico Isaac
3/21/2013 5:15:00 PM

Filed Under: central banks, debt crisis, euro, europe, european central bank, European debt crisis, european markets, eurozone, liquidity, soverign debt crisis

Category: European Markets

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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

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Chaos and the Stock Market May Be Set to Collide
Contemplate what's ahead for the markets BEFORE it happens

By Bob Stokes
1/10/2013 12:45:00 PM

To err is human. This truism is conspicuously true of financial markets -- especially when human error meets the limits of modern technology. Bob Prechter elaborates:

"Trading stocks, options and futures could be extremely problematic during ..."

Filed Under: Bob Prechter, CNBC, conquer the crash, Elliott wave, history, liquidity, market crash, market forecasts, risk management, Traders, trading lessons, U.S. STOCK MARKET, VIX, volatility, volume

Category: Stocks

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Two Signs That Deflation is Far From Over
A key economic index turns south

By Bob Stokes
12/14/2012 4:00:00 PM

The Producer Price Index decline is happening in tandem with a notable reversal in consumer sentiment. The Federal Reserve's machinations -- which includes the Dec. 12 announcement of $45-billion in monthly Treasury bond purchases -- will not stave off a developing deflationary trend. How much farther does the economic cycle have to go before it reaches the bottom?

Filed Under: conquer the crash, deflation, economic indicators, Elliott wave, liquidity, monetary policy, quantitative easing, Robert Prechter, sentiment, U.S. Federal Reserve (the Fed)

Category: U.S. Economy

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$16 Trillion and Growing: A Mind-Blowing Perspective on U.S. Debt
National debt + deficit = Deflationary disaster

By Bob Stokes
10/15/2012 5:30:00 PM

The total amount of global debt, says Robert Prechter in a recent Theorist, is estimated to be around a quadrillion dollars. That's $1,000,000,000,000,000, or one-thousand trillion dollars. Is a day of reckoning ahead?
 

Filed Under: Ben Bernanke, central banks, conquer the crash, debt crisis, deficit, deflation, Elliott wave, gross domestic product (GDP), liquidity, Robert Prechter, U.S. Federal Reserve (the Fed)

Category: U.S. Economy

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U.S. Markets: The Flow of Excessive Liquidity Cannot Be Endless
Prices of risk assets correspond to liquidity flow

By Bob Stokes
10/8/2012 6:00:00 PM

Loose money has flowed into financial assets. Prices have risen as institutional investors employ leverage of 30x and higher. The flow of excessive liquidity cannot be endless. So what happens to risk-asset prices when that flow starts to dry up? Take a look at two charts.

Filed Under: all the same market theory, diversification, Elliott wave, hedge funds, liquidity, market forecasts, quantitative easing, U.S. Federal Reserve (the Fed), U.S. STOCK MARKET, volume

Category: Stocks

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Most-Owned Stocks Among Institutions Are In a Bear Market
The underestimated downside of over-leveraged stock indexes

By Bob Stokes
9/17/2012 4:45:00 PM

When the popular indexes like the S&P 500 and the NASDAQ start to catch up on the downside, the descent will likely unfold with speed. That's because, when fear is combined with highly leveraged positions, the big money can...

Filed Under: all the same market theory, Bear market, diversification, Elliott Wave Theorist, hedge funds, investor psychology, liquidity, market forecasts, momentum, technical indicators, U.S. STOCK MARKET

Category: Stocks

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Bernanke's Bigger Bubble: QE-3 and the Coming Economic Crash
Why monetarist theory is flawed

By Bob Stokes
9/14/2012 5:30:00 PM

We've all heard the definition of insanity: doing the same thing over and over and expecting a different result. Why should we think QE-3 will work when the previous two failed? (Don't think they failed? Then ask yourself why we need a third one.) Monetary policy cannot make the global credit bubble simply vanish. Only a deflationary crash can do that. The chart below reveals why...
 

Filed Under: 1929 Stock Market Crash, Ben Bernanke, central banks, conquer the crash, credit crisis, credit rating, debt, deflation, economic depression, economic indicators, Elliott wave, Interest Rates, liquidity, monetary policy, quantitative easing, Robert Prechter, U.S. Federal Reserve (the Fed)

Category: U.S. Economy

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The Federal Reserve Has No Cure for What Ails the Economy
Learn why the credit crisis will inevitably conclude in a deflationary depression

By Bob Stokes
7/18/2012 3:30:00 PM

The Federal Reserve will not be able to prevent a global credit collapse. EWI's Financial Forecast Service offers ideas on how to position yourself. These are ideas you can put to work right away. The unprecedented build-up of credit in the past 80 years means the economic collapse could be swift. It's best to prepare now...

Filed Under: banks, Ben Bernanke, central banks, credit crisis, credit rating, debt, deficit, deflation, economic depression, economic indicators, Elliott wave, european central bank, European debt crisis, Federal Open Market Committee (FOMC), Greenspan, liquidity, M3 money supply, monetary policy, monetization, QE2, quantitative easing, Sovereign Debt, Treasury bonds, U.S. Federal Reserve (the Fed), unemployment

Category: U.S. Economy

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How to Keep Your Head Above Deflation and Economic Depression
Protect your finances and future during the downward spiral

By Bob Stokes
7/13/2012 3:45:00 PM

As the velocity of money slows, a man known for having plenty of it has just changed his long held upbeat economic tune. On July 12, billionaire Warren Buffet...

Filed Under: conquer the crash, debt crisis, deficit, deflation, economic depression, Elliott wave, European debt crisis, housing prices, liquidity, M3 money supply, soverign debt crisis, U.S. Federal Reserve (the Fed)

Category: U.S. Economy

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Good-bye Stock Trades: Look Who's Had Enough
Since 2008, stock trading has continued to fall. What do we see ahead?

By Bob Stokes
5/14/2012 5:30:00 PM

During Q1 of 2012, trading on the New York Stock Exchange was down 23 percent vs. last year. But if many individual investors have stayed out of the market, how has the S&P 500 more than doubled? Moreover, what do we see ahead?...

Filed Under: banks, credit default swaps, Elliott wave, financial forecast, investment decisions, investor psychology, liquidity, risk appetite, Robert Prechter, stock indexes

Category: Stocks

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Gold and Silver: Hedges Against a Financial Downturn?
You might be surprised by the answer

By Bob Stokes
5/11/2012 4:45:00 PM

The run-ups in silver and gold since 2008 have many precious metals bulls believing that the pullback in recent months is just temporary. What do we see ahead for these two precious metals? I can say that the charts suggest...

Filed Under: economic depression, Elliott wave, Gold, gold futures, liquidity, market forecasts, platinum futures, recession, silver, silver futures, Traders

Category: Gold and Silver

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Learn Where to Keep Your Assets Safe (Besides a Safe Deposit Box)
The latest Theorist tells you about safe storage facilities in the U.S. and Overseas

By Bob Stokes
3/29/2012 2:45:00 PM

Robert Prechter's emphasis on financial safety served subscribers well in the 2007-2009 financial crisis. We anticipate that a financial safety plan will be of greater benefit during a time of economic chaos ahead. But where can you keep your assets safe? Learn more...

Filed Under: conquer the crash, credit crisis, credit rating, debt crisis, deflation, economic depression, Elliott Wave Theorist, liquidity, monetary policy, risk management, Robert Prechter, safe haven, U.S. Federal Reserve (the Fed)

Category: U.S. Economy

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U.S. Bonds: Loved By No One... But Outperforms Them All. Learn Why
Newsflash: U.S. bonds outperform U.S. stocks! Another investment theme EWI got right -- here's how

By Nico Isaac
1/12/2012 4:45:00 PM

On the financial playground, long-term bonds are generally the last picked for the winning team -- well behind equities, commodities, high-yield (junk) bonds, even the barely established emerging markets. The reason being: the amount of time it takes to actually reap the fruits of your return. BUT, as a January 5, 2012 CNBC articlereveals, the asset that supposedly nobody loves has outperformed them all.

Filed Under: conquer the crash, credit crisis, debt, debt crisis, deflation, Elliott wave, emerging markets, hyperinflation, inflation, Interest Rates, liquidity, Robert Prechter, QE2, quantitative easing, social mood, Treasury bonds, U.S. Federal Reserve (the Fed), U.S. Treasuries

Category: U.S. Economy

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America's Biggest Banks: How Safe Are They?
"The Coming Worldwide Bank run"

By Bob Stokes
11/30/2011 4:30:00 PM

Fifteen major U.S. and European banks were just downgraded by Standard & Poor's. Please consider this insightful excerpt from a recent Elliott Wave Theorist titled, "The Coming Worldwide Bank run"...

Filed Under: bailouts, central banks, Club EWI, credit crisis, debt downgrade, european central bank, European debt crisis, liquidity, Robert Prechter, soverign debt crisis, stimulus package

Category: U.S. Economy

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Will Commodities Save Your Portfolio? Connect the Dots
If stocks and hard assets are "supposed to" move in opposite directions, how do you explain this chart from Bob Prechter's "Conquer the Crash"?

By Nico Isaac
10/6/2011 5:45:00 PM

In 2008, the mainstream experts were dead set on the idea that commodities would provide shelter from the maelstrom raging within stocks and bonds. Their outlook was based on expectations for a repeat of the 1970's inflation and the theory that stocks and commodities always move in opposite directions. YET -- from its July 2008 peak, the Reuters/Jefferies CRB Index of commodities plummeted 58% in its biggest decline in 28 years -- right alongside plunging stock markets.

Filed Under: 1929 Stock Market Crash, Robert Prechter, CRB index, deflation, Elliott wave, Elliott Wave Theorist, fundamental analysis, history, inflation, liquidity, technical analysis

Category: Commodities

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Evaporation of Wealth on a Vast Scale
How $1-million can disappear

By Bob Stokes
9/15/2011 11:00:00 AM

Bursting of the "debt bubble": It's the financial story of our age and it's happening before our eyes. The full scope is hard to keep up with because it's unfolding at various levels, such as...

Filed Under: Club EWI, conquer the crash, consumer credit, debt crisis, European debt crisis, foreclosures, liquidity, Robert Prechter, soverign debt crisis

Category: U.S. Economy

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Are There "Safe Havens" in This Uncertain Financial World?
Discover Robert Prechter's Updated Answer in the Latest Theorist

By Bob Stokes
6/28/2011 6:15:00 PM

The fact that a substantial percentage of U.S. based money market funds have holdings in European banks doesn't mean a given money market fund will suffer a loss. Yet exposed money market funds may be at risk if the sovereign debt crisis escalates...

Filed Under: conquer the crash, Elliott Wave Theorist, European Union (EU), Greek debt, Irish debt crisis, liquidity, mutual funds, Robert Prechter, safe haven, soverign debt crisis

Category: U.S. Economy

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