Robert Prechter is a leading technical analyst and market forecaster who specialises in a technical analysis method called Elliott Wave Theory. In late February 2009, Prechter said “cover your shorts” and predicted a sharp rally that would take the DOW to the 10,000 level. That prediction came to pass. Watch the following video to find [...]
I have been reading about the overcapacity problem in China in financial blogs for quite a few months now. I have seen youtube videos about empty cities in China but there were no hard numbers on how big a problem this is until Jim Chanos announced some findings from his research on China to the [...]
I wish I can be a little bit more enthusiastic when I exchange “Happy New Year” wishes with family and friends. I just cannot do it because deep inside, I think there will be more pain to come in 2010 for investors. When I look at the events that have taken place in the past [...]
I remember a few key people who warned about an impending recession back in 2007 when the stock market was still making new highs. One very vocal person was Nouriel Roubini, an economics professor from New York University, who was so bearish that he was nicknamed “Dr Doom”. Since his predictions have come true, his [...]
The mainstream media is almost unanimous in declaring that the recession is over and many analysts/advisers are saying it is now time to buy stocks, after the market has rallied more than 50%. Where were these people back in March 09 when the market started its rally? That would have been the right time to [...]
In my earlier post Case for Deflation – Part 2, I talked about the concept of the “Spending Wave”. Do read that post first if you are not familiar with what it is. Using population estimates from the United Nations, Harry Dent has plotted Spending Wave charts for all countries in his book and they [...]
When I am doing my analysis for stocks, I like to use a combination of fundamental and technical analysis. I look at price charts a lot to determine my entry (and exit) from stock positions but only for stocks that I believe to be fundamentally sound. While I am a believer of technical analysis because [...]
Asset deflation is already a foregone conclusion in the US as the price of property and stocks have been falling in the past two years. Price deflation only started to manifest itself later with CPI falling from mid 2008 and finally turning negative in 2009. Those who predicted deflation based their case on falling US [...]
‘Inflation or Deflation’ was a hotly debated topic in the popular Aussie Stock Forum last week so I thought I would write a few posts with my thoughts on this topic. There are many economists who are convinced that due to government action in the recent financial crisis, there will be high inflation in the [...]