Sunday, February 2, 2014

How about a 50% crash?


For a long time, we have been hearing that the stock market is headed for a significant crash. Is 2014 the year?

Back in 2011, some Elliott Wave aficionados were telling us that the crash was on its way. Since that time, there has been a tendency to stop listening to those who have been crowing about the next financial crisis since before we even recovered from the last financial crisis. 

But during the past few weeks, we have been receiving warnings from outside the usual "gloom and doom" sphere. Most notably, bond guru Jeffrey Gundlach gave a webcast presentation on Jan. 14, which raised more than a few eyebrows. Gundlach explained that as the Federal Reserve proceeds to taper its monthly bond purchases, stock market volatility will escalate. He considered the record-high margin-debt levels on the New York Stock Exchange as a signal of a stock market "top."

More @ Market Watch


  1. I know there's a way to make money by betting on stocks losing money.
    I just wish i was able to do it about a month ago- before it became obvious to everyone.

  2. Buy shorts though I never did it and wish I had never heard of stocks.:)

  3. I'm an Elliottician myself. The Fed has been buying support in the Dow for quite some time but late last year the bottom in interest rates occurred. It is roughly a 55-65 year cycle. (Kondratieff wave) Interest rates will stairstep higher for the next few decades and that pretty much ruins the Feds QE plans. As any Elliott wave follower realizes, the Fed does NOT set interest rates...they follow the rates with perhaps a 6 to 12 month lag to market rates. It is going to get VERY interesting and I'm betting Obama will be driven out of office just like Nixon.