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For Stocks, The Worst Decade Ever

January 3rd, 2010 Blog Writer No comments

Discover Chris Rowe’s Internal Strength System the ultimate stock trading system that works in both bulls and bears. Forex is a better option than stocks. Learn Forex Day Trading from Bill Poulos especially those who have no time and no experience but still want a 5 figure monthly income part time with forex. Know these Candlestick Patterns! Robert Folsom, Club EWI Manager, Elliott Wave International on the stock market of this year: December is the customary time for the media to publish articles about “How the stock market did this year.” But, any honest “lookback” article at the close of 2009 won’t be customary at all. The full story will include a lot more than an “up-or-down-or-sideways” summary about the Dow Industrials and S&P 500. To wit, this is more than another end-of-the-year: These are also the final days of the decade that began in 2000. As for how much more, that’s best explained literally in terms of how much less: “For Stocks, the Worst Decade Ever”. That headline ran atop an article in last week’s Wall Street Journal. The words do not exaggerate. As the article itself said, “With two weeks to go in 2009, the declines since the end of 1999 make the last 10 years the worst calendar decade for [U.S.] stocks going back to the 1820s, when reliable stock market records begin…”

This is the deathblow to a theory held by a generation of academics, economists and advisors who preached “efficient markets” and “stocks for the long run.” More to the point, their theories built on sand contributed to the now-vanished wealth of millions of investors. The even sadder truth is that the average stock investor grossly underperforms the stock indexes. When the indexes lose, individual investors lose even more.

We forecast almost every major financial market in nearly every region of the world. Not that it needs saying, but I’ll say it anyway: Sometimes we’re wrong. Yet we were right about the big picture for the U.S. stock market during the past decade. We were right to warn that a crash could wipe out years of nominal gains; and to say that a person’s home would provide little financial shelter; and to shed light on the speculative excesses in markets like stocks, real estate and crude oil. In his speeches, scores of interviews, monthly Elliott Wave Theorists and a bestselling book, Conquer the Crash, Robert Prechter warned anyone who would listen.

Of course, many people did listen. And we hear from those grateful subscribers all the time. It was not the “worst decade ever” for their investments. In a few days, another year — and the next decade — will begin. The choices you make about your financial future begin with your choice of information. So my appeal to you is simple: Choose an information source that has proven itself as none other has.

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Popular Culture And Stock Market

December 26th, 2009 Blog Writer No comments

Discover Chris Rowe’s Internal Strength System the exact stocks and options trading system that made him a millionaire while still in his 20s. Learn this 10 minute a day Swing Trading Strategy. If you can read an email, you can start printing cash with this 1500 pips a day Forex Signal Service from heaven! This is what Robert Folsom, Club EWI Manager, Elliott Wave International says: The mainstream has reached a consensus: The worst of “The Great Recession” is finally over. They foresee a New Year of profits. Even its outspoken critics have begrudgingly conceded that the government’s unprecedented measures over the past two years are responsible for the recovery. Well, we write to tell you, don’t believe the hype. To wit, Robert Prechter makes the following point in his brand new December Theorist:

“Ironically (is there any other way?), the media just reported a rise in wholesale prices of 1.8% for November, and economists are interpreting it as inflationary and therefore bearish for the dollar. But this number is a lagging indicator. It is indeed reflecting inflation, but it’s the inflation that already occurred over the past three quarters of the year. The dollar accurately signaled a period of inflation nine months ago when it turned down, and commodities confirmed inflation the whole time as they rallied into November. … But the wholesale price jump is distracting commentators into writing about this ‘warning sign’ of inflation, just as a falling Consumer Price Index produced a peak in deflation-related articles in November 2008, a whole year late.”

In other words, the media covers the markets now as ever, by extrapolating trends into the future. They never acknowledged that their trusty indicators failed miserably to signal the most important turning points of the past decade: October 2007 and March 2009. (Prechter was virtually alone in anticipating both of these monumental reversals.) In his brand new December Theorist, Bob focuses squarely on the most important investment issues for tomorrow. You will get unparalleled insight into the government’s new initiatives throughout the crisis and how those new programs will affect you in 2010. Ignore this issue at your peril. Please learn more about the December 2009 Elliott Wave Theorist now.

We’ve just posted Robert Prechter’s landmark report, “Popular Culture and the Stock Market.” Although originally published in 1985, “Popular Culture and the Stock Market” is so timeless and relevant that USA Today covered its insights in a recent November 2009 article. The 50-page report walks you through the ups and downs of the DJIA — our most sensitive meter of social mood — and analyzes the trends in popular music and TV shows through periods of positive and negative social mood over the past century. It reveals how social mood, as reflected in the stock market, actually defines popular culture. By the way, you can get alerted to new Club EWI resources even sooner when you subscribe to one or both of EWI’s free email newsletters. You’ll get some of the best Elliott wave insights and can’t-miss news stories, plus notifications of new and classic Club EWI resources. Add newsletters to your Club EWI profile in just a matter of seconds.

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