Tag: Elliott Wave Theorist

Here's What Stock Market Bulls Might Be Overlooking

Posted on by The INO.com Team

By:Elliott Wave International

On Friday (Feb. 27), the 4th quarter U.S. GDP was revised downward to 2.2% from the original 2.6%.

"U.S. stock markets shrugged off the revision," wrote Fox Business. And why wouldn't they -- after all, the conventional wisdom says that as long as the economy is growing, so is the stock market.

Except, it's not exactly true.

See, if that notion were true, then you'd have to assume that the U.S. economy was in a bad shape in 2007, when the stock market began its biggest decline since the Great Depression. But the facts show the opposite.

When the Dow topped in October 2007, key economic measures were indeed strong: Continue reading "Here's What Stock Market Bulls Might Be Overlooking" →

Don't Get Ruined by These 10 Popular Investment Myths (Part IX)

Posted on by The INO.com Team

Interest rates, oil prices, earnings, GDP, wars, peace, terrorism, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that after the 2008-2009 crash, many called into question traditional economic models. Why did they fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

This series gives you a well-researched answer. Here is Part IX; come back soon for Part X.

Myth #9: Inflation makes gold and silver go up.

By Robert Prechter (excerpted from the monthly Elliott Wave Theorist; published since 1979)

This one seems like a no-brainer. The government or the central bank prints more bonds, notes and bills, and prices for things go up in response. Gold is real money, so it must fluctuate along with the inflation rate.

Once again, it doesn't happen that way. Let's examine the history of inflation and the precious metals since the low of the Great Depression.

Inflation occurred relentlessly from 1933 to 1970, yet gold and silver remained unchanged over the entire time. True, the government fixed the price. But markets are more powerful than any government, and if the market had wanted precious metals prices higher, it would have made them go higher. Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part IX)" →

Don't Get Ruined by These 10 Popular Investment Myths (Part VIII)

Posted on by The INO.com Team

Interest rates, oil prices, earnings, GDP, wars, peace, terrorism, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that after the 2008-2009 crash, many called into question traditional economic models. Why did they fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

This series gives you a well-researched answer. Here is Part VIII; come back soon for Part IX.

Myth #8: Terrorist attacks would cause the stock market to drop.

By Robert Prechter (excerpted from the monthly Elliott Wave Theorist; published since 1979)

I assume this is what economists mean when they say that something unexpected such as a terrorist attack would cause them to re-evaluate their stock market forecasts. At least, I doubt they mean that a terrorist attack would cause them to revise their estimates upward. It seems logical that a scary, destructive terrorist attack, particularly one that implies more attacks to come, would be bearish for stock prices. Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part VIII)" →

Don't Get Ruined by These 10 Popular Investment Myths (Part VII)

Posted on by The INO.com Team

Interest rates, oil prices, earnings, GDP, wars, peace, terrorism, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that after the 2008-2009 crash, many called into question traditional economic models. Why did they fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

This series gives you a well-researched answer. Here is Part VII; come back soon for Part VIII.

Myth #7: "Peace is bullish for stocks."

By Robert Prechter (excerpted from the monthly Elliott Wave Theorist; published since 1979)

Most people would not argue that peace is bearish for stock prices. It would seem logical to say that peace allows companies to focus on manufacturing goods, providing services, innovation and competition, all of which helps the overall economy.

But does peace in fact have anything to do with determining stock prices? Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part VII)" →

Don't Get Ruined by These 10 Popular Investment Myths (Part VI)

Posted on by The INO.com Team

Interest rates, oil prices, earnings, GDP, wars, peace, terrorism, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that after the 2008-2009 crash, many called into question traditional economic models. Why  did they fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

This series gives you a well-researched answer. Here is Part VI; come back soon for Part VII.

Myth #6: "Wars are bullish/bearish for stocks."

By Robert Prechter (excerpted from the monthly Elliott Wave Theorist; published since 1979)

... If the stock market is not reflecting macroeconomic realities, what else could it possibly be doing? Well, how about political news? Maybe political events trump macroeconomic events.

It is common for economists to offer a forecast for the stock market yet add a caveat to the effect that "If a war shock or terrorist attack occurs, then I would have to modify my outlook."

For such statements to have any validity, there must be a relationship between war, peace and terrorist attacks on the one hand and the stock market on the other. Surely, since economists say these things, we can assume that they must have access to a study showing that such events affect the stock market, right? Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part VI)" →