Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21
Bitcoin Halvings Price Forecast and Stock to Flow Analysis - 18th Jul 21
Dell S3220DGF Unboxing and Stand Assembly - 32 Inch 165hz Curved Gaming Monitor Amazon Discount - 18th Jul 21
What Does The Fed Mean By “Transitory Inflation” And Why Is It Important To Understand? - 18th Jul 21
Will the US stock market’s worsening breadth matter? - 18th Jul 21
Bitcoin Halving's Price Projection Forecasts Trend Trajectory - 18th Jul 21
Dell S3220DGF Price CRASH to £305! 32 Inch 165hz Curved Gaming Monitor Amazon Bargain - 16th Jul 21
Google, Amazon and Netflix are Scrambling For This Rare Gas - 16th Jul 21
Sheffield Millhouses Park New Children's Play Area July 2021 Vs Old Play Area - Better or Worse? - 16th Jul 21
Inflation Soars, Powell Remains Unmoved. What about Gold? - 16th Jul 21
Goldrunner: Gold Could Jump To $1,900-$2,100 In Next 30 days – Here’s Why - 15th Jul 21
Tips For Finding The Right Influencers - 15th Jul 21
ECB Changed Monetary Strategy. Will It Alter Gold’s Course? - 15th Jul 21
NASA And Big Tech Are Facing Off Over This Rare Gas - 15th Jul 21
Will the U.S. Dollar Lose Momentum In the Second Half of 2021? - 15th Jul 21
Bitcoin Stock to Flow Model Forecasts Infinity and Beyond! - 14th Jul 21
Proteomics: The Next Truly Massive Investing Opportunity - 14th Jul 21
Massive Solar Storm to Hit Earth 2025, Coronal Mass Ejection (CME) Danger and Protection Solutions - 14th Jul 21
Is This The Best Way To Play The Coming Helium Boom? - 14th Jul 21
Meet SuperMania and its Ever-Present Sidekick, SuperMeltdown - 14th Jul 21
How NFTs Are Shaking Up Arts Trading - 14th Jul 21
Gold: High Time to Move Out of the Penthouse - 13th Jul 21
Climb Aboard! Silver Should Run Up To $38 In Next 30 Days - 13th Jul 21
How Will Remote Work Impact the U.K. economy? - 13th Jul 21
Why Helium Stocks Are Set To Soar in 2021 - 13th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stocks Bull Market Continues as Deflationists Remain Stuck in Debt Deleveraging Deflation Time Warp

News_Letter / Financial Markets 2010 May 02, 2010 - 07:39 AM GMT

By: NewsLetter

News_Letter The Market Oracle Newsletter
April 26th, 2010 Issue #25 Vol. 4


The Market Oracle Newsletter
April 26th, 2010            Issue #25 Vol. 4

Commodities Currencies Economics Housing Market Interest Rates Education Personal Finance Stocks / Financials Real Gems

Stocks Bull Market Continues as Deflationists Remain Stuck in Debt Deleveraging Deflation Time Warp

Inflation Mega-Trend Ebook Direct Download Link (PDF 3.2m/b)

Dear Reader

The stocks (stealth) bull market put in a new high with the Dow hitting 11,205 right at the end of the week after range trading between 11,150 and 1,100 for most of the week.

Stock Market Forecast Conclusions from my 2 pieces of in-depth analysis of the year -

02 Feb 2010 - Stocks Stealth Bull Market Trend Forecast For 2010

Dow 10,067 - Stocks Multi-year Bull Market that bottomed in March 2009 will trend Sideways during first half of 2010 attempting to break higher. The second half will see a strong rally to above 12,000 targeting 12,500 during late 2010.

23 Mar 2010 - Stocks Stealth Bull Market Trend Forecast Into May 2010

Dow (DJIA) March to May Stock Market Trend Forecast Conclusion - Therefore my specific conclusion is for a continuation of the uptrend into early to mid May, achieving the 12,000 target during this time period

So far the stock market trend remains UP and in line with forecast expectations, so still no need for an in depth update yet, I'll let the perma bear crowd SHORT the market rally all the way to Dow 12k, from past 7k, then 8k, 9k, 10k, and 11k. Time wise we will start to enter the forecast window for a significant top within the next 2 weeks so the price action during the next 2 weeks should prove interesting.

Dow Trading - Both continuation BUY Triggers mentioned last week were hit (Minor 10,065, Main 11,160). The primary SELL trigger is now at 10,970 up from last weeks 10,830.

Meanwhile deflationists persistently and continually argue the case that the financial crisis MUST mean that over leveraged economies MUST deleverage and hence DEFLATE. That is what the ivory tower economic models suggest 'should' happen.

But what the deflationists are clearly forgetting is that there are two sides to the leverage equation, i.e. the ratio of debt to capital. Therefore rather than decreasing debt what we are seeing is the INFLATION of Capital asset values that delivers DELEVERAGING without DEFLATION as the ratio of debt to capital goes DOWN.

Asset price inflation results in much stronger than expected economic growth as it allows for new collaterisation of securities which demand greater source material i.e. loans to be issued to enable packages to be sold onto investors and so begins a new cycle that perpetuates economic growth into a boom that off course will again eventually go bust.

Germany Conquers Europe as Bankrupt Greece Seeks German Bailout

The Greeks are seeking to fund their profligate lifestyle by means of perpetual German tax payer cash (loans) that they will NEVER repay. Off course despite the German press saying not to hand over the cash to Greece, this is how the Germans want it to be, as more of E.U. power gravitates towards Germany as they retain a firm grip over the whole of Euro land all without firing a single SHOT!

German economic power relies on bankrupt nations such as Greece being kept on life support so as to ensure that the EURO collective currency remains relatively weak against the likes of the Dollar, for if the Euro did not exist then the German Deutschmark would have shot through the roof which would have crippled Germanys export focused industrial base. This way Germany gets to sell its goods in Euro land and across the world at a relatively small cost of loaning out funds to countries such Greece that are becoming heavily indebted to a Germany that is all the while seen as the altruistic good guy, when the truth is that the benefits to Germany are far greater than the bailout costs of maintaining the Euro system where the Eurozone countries that cannot compete against Germany cannot competitively devalue and hence become a captured consumer market that will ever become poorer and poorer as Germany becomes richer and richer.

The leadership in the Reichstag must be wondering If only we could also get that stubborn little island floating off the coast of Normandy to join the Euro land, how much bigger the captured market would be for German goods and how that much more powerful Germany industry would become with another weak currency assimilated into the Euro. Thankfully Britain remains Euro skeptic and is not likely to make the same mistake as many others have and will pay the price for, for decades as they become economically weal satellite states of a Greater Germany.

Who Could be the Next Euro Land Economy to be Bailed Out?

My March analysis (Global Sovereign Debt Crisis, Country Bankruptcy Relative Risk of Default) suggested that Ireland could be making the headlines over the coming months.

Everyone is Running after Goldman's but what about Paulson's Hedge Fund?

From what I can glean from the facts of the Goldman Fraud allegations, the person that actually profited to the tune of over $1 billion was Paulson's Hedge Fund, so why is the SEC not going after Paulson? After all it was Paulson who was advising on the specific toxic sludge bonds that should go into the AMBAC CDO because Paulson was betting AGAINST IT, that to me sounds like FRAUD. I.e. investors being told to buy crap because it is a great product, meanwhile Paulson's is advising the firm creating the CDO to fill it up with hidden timed to explode toxic bombs that Paulson knows will explode and make him a billion from just a mere $15 million risk!.

The British Rich Got 30% Richer During 2009

The British rich enjoyed a bumper year during 2009 by recording largest increase in wealth in the Sunday Times Rich List 22 year history. The rich, who are mostly the smart money (if they were dumb they would have lost their money), managed to latch on to a significant part of the stocks stealth bull market (15 Mar 2009 - Stealth Bull Market Follows Stocks Bear Market Bottom at Dow 6,470) and other manifestations of asset price inflation by registering a record jump in their wealth by 30%.

UK Economic Recovery Continues.

UK economic growth for the first 6 weeks of 2010 came in at a disappointing 0.2% partially due to snowmageddon. However I expect the full Q1 results to be marked significantly higher just as at the time of 2009 Q4 growth data release of just 0.1% I stated that it would eventually be revised higher to 0.4% which it was several months later. Therefore Q1 2010 Growth will likewise be revised higher to somewhere between 0.6% and 0.9%, which is in line with my forecasts for a strong economic recovery during 2010. Off course it is all too late for Gordon Brown who was banking on better data on the 1st release in the region of 0.4%.

Your analyst,

Comments and Source here : http://www.marketoracle.co.uk/Article18932.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved

Featured Analysis of the Week

Most Popular Financial Markets Analysis of the Week :

1. America’s Economic Recovery Is a Rotten Sham

By: Justice_Litle

More evidence has arisen that the "strategic default" consumer spending thesis is correct - and that the economic recovery on the whole is based on a rotten sham.

The economic "recovery" we are now witnessing is based on theft, greed and deceit. It's a giant rip-off, a rotten sham. In this sleazy imitation of a free market economy, liars, cheats and deadbeats are the ones getting rewarded.

Read Article

2. U.S. In the Midst of the Greater Depression, Fourth Turning Generational Crisis

By: James_Quinn

“Now I want you to remember that no bastard ever won a war by dying for his country. He won it by making the other poor dumb bastard die for his country. Now there's another thing I want you to remember. I don't want to get any messages saying that "we are holding our position." We're not holding anything. Let the Hun do that. We are advancing constantly and we're not interested in holding onto anything except the enemy. We're going to hold onto him by the nose and we're going to kick him in the ass. We're going to kick the hell out of him all the time and we're going to go through him like crap through a goose!”

Read Article

3. 14 Risks of Holding U.S. Government Treasury Bonds

By: Martin_D_Weiss

When AT&T, California, New York City or virtually any other borrower wants your money and offers its bonds for sale, it’s required to give you a prospectus that properly discloses all the relevant risks.

It has a legal obligation to tell you about any material weakness, hidden liabilities or contingencies that could diminish your chances of getting paid in full.

Read Article

The U.S. Econonomies Future

4. Deeper Double Dip Recession as Keynesian Fails

By: Gary_North

The case for a secondary recession rests on several factors: a double-dip decline in the residential real estate market, the accelerating decline in the commercial real estate market, the unresolved losses in bank balance sheets, the narrow focus of the profitability (earnings), which has been limited to bailed-out banks, and the threat of rising long-term interest rates, i.e., a decline in the bond market.

Read Article

5. Scardy Cat Gold Bugs

By: Howard_Katz

Alas, poor gold bug; I knew him Horatio.  He had the brains to be perfectly positioned in the great gold bull market of 1999-2020.  Yet he did not make any money from his wisdom.  Take, for example, the sell-off of April 16, 2010.  Gold was just about to make another powerful move to the upside.  But the sell-off scared him away, and he missed the move.  What was it that he did wrong?

Read Article

6. The Devaluation of the U.S. Dollar, Gold's Springboard

By: Jim_Willie_CB

The need is urgent. The recognition is broad. Supply & Demand of American debt paper demand price adjustment. The USGovt avoids the topic like the plague. The billboard fact of the matter, as USCongressional politicians like to say, is that the USDollar must be take a downward revaluation of significant magnitude in order to even begin to offer a semblance of equilibrium and balance. Natural forces are aligned against those in power who resist the adjustment. Imbalances are too magnificent. They invite continued global revolt and financial insurrection.

Read Article

The Most Important Report of 2010

7. Global Financial Maelstrom Continues, Government Policies of Insolvency

By: Ty_Andros

The global financial maelstrom continues to unfold as public serpents, central banks and crony capitalists continue to pour gas on the fires.   It is set to continue.  The collapse of FIAT paper wealth storage is unfolding with breathtaking speed.  Asset bubbles continue to emerge in the emerging world and collapse in the developed world as capital FLEES.  Today’s missive covers the deep insolvencies in the developed world and the definitions of solvency of Austrian Economics.  The inflationary depression still lies in our futures.

Read Article

8. Gold, HUI and Stocks On the Brink of an Asset Explosion II

By: Toby_Connor

Let me start off by saying the market should be correcting.  Sentiment has reached ridiculous bullish extremes, the kind of extremes that led to the January /February correction.  

That correction separated the second leg of the bull from the third.  But let’s face it, sentiment has been in this condition for several weeks now and the best we could muster was a minor correction of 30 points on the news the SEC was filing charges against Goldman Sachs for fraud.

Read Article

Subscription

You're receiving this Email because you've registered with our website.

How to Subscribe

Click here to register and get our FREE Newsletter

To access the Newsletter archive this link

Forward a Message to Someone [FORWARD]

To update your preferences [PREFERENCES]

How to Unsubscribe - [UNSUBSCRIBE]

About: The Market Oracle Newsletter

The Market Oracle is a FREE Financial Markets Forecasting & Analysis Newsletter and online publication.
(c) 2005-2010 MarketOracle.co.uk (Market Oracle Ltd) - The Market Oracle asserts copyright on all articles authored by our editorial team. Any and all information provided within this newsletter is for general information purposes only and Market Oracle do not warrant the accuracy, timeliness or suitability of any information provided in this newsletter. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We recommend that independent professional advice is obtained before you make any investment or trading decisions. ( Market Oracle Ltd , Registered in England and Wales, Company no 6387055. Registered office: 226 Darnall Road, Sheffield S9 5AN , UK )

Terms of Use | Privacy Policy

Copyright 2010 MarketOracle.co.uk

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in