Online stock market investing is a risky prospect these days. For a limited time you can download a free copy of the May issue of Elliott Wave Financial Forecast to help you decide how you should proceed for the rest of 2012 and beyond ~editor The Smell of Fear: Detecting the Dow's Scent Stocks typically fall faster than they rise Rising stock prices vs. investor fear: When one is present, the other is usually absent. Yet the two were actually in each other's company around the time of the most recent high in the Dow Industrials (May 1): This week the Dow carried to a new recovery high without generating a corresponding new low in the VIX. This suggests a sudden hesitancy compared … [Read more...]
Inflation Adjusted Stock Prices
Adjusted Stock Price Financial advisors will often tell us of the steady increases available only through the stock market and present us with beautiful charts showing the relentless march of the the stockmarket ever higher and to the right. But what about inflation? How does the stock market perform when inflation is taken into consideration? After we take the loss of purchasing power into account have all the gains disappeared? When adjusting stock prices for inflation we typically use the US Bureau of Labor Statistics Consumer Price Index CPI-U. Prices are then calculated in "real" dollars. That means that the price is adjusted so that we can see what it would have cost if prices … [Read more...]
Pressures Mount on Bank of England (BOE) to Devalue Pound
October 7, 2010 By Chris Ciovacco The Bank of England (BOE) is due to make a statement today at noon in London (7:00 a.m. ET U.S.). The BOE’s actions in the next 45 days may be important to investors in the U.S. and global commodity markets. All things being equal, a weak U.S. dollar tends to provide favorable headwinds to both U.S. stocks and commodities, such as oil (USL), copper (JJC), gold (GLD), and silver (SLV). With the BOE facing more bad news on the housing front today, political pressures to join the money-printing parties in the United States and Japan are mounting. As shown below, the U.S. Dollar (UUP) and British Pound (FXB) tend to be negatively correlated. Should the … [Read more...]
