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Stocks and Deflation in the Greater Depression?

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Stocks and Deflation: Are We Set Up for a Perfect Storm?

STOCKS AND DEFLATION

Stocks and Deflation in the Greater Depression

By Delwyn Lounsbury - THE DEFLATION GURU

The stocks and deflation downtrend started year 2000 with the dot com stock mania climax and bubble top. You could lose money big time as stocks lose 90 percent of their value by 2016. There has been a 13 year head and shoulders top formation since which proves stocks and deflation don't mix. In addition, if you draw a neckline, the straight line connecting the bottoms of stock indices movements, you get a downward sloping line. This is a major bearish technical indicator. A secular bear market is in progress with a bear market (fools) rally currently in progress in 2011.

The stock market decline on 8/8/2011 had a historic 69:1 ratio of NYSE declining versus advancing stocks, with 3033 shares ending the session down and only 44 shares ending the day up. This intensity of selling pressure eclipsed the crash of 10/19/1987 when the ratio was 57:1. This is a very ominous sign. We are already 11 years into the GREATER DEPRESSION. If you don't believe me just look at a 11 year graph of the NASDQ Stock Exchange. Symbol QQQ. It has not gained back more than 60% of the drop from the top back in 2000. It is the NASDQ where the true growth companies of the world trade. They are the real job creators like Apple, Microsoft, Intel and Research in Motion etc. The Dow Jones Industrial average and the S & P 500 (Standard and Poor’s 500 stock indexes) averages are fudged by throwing out the weak companies and replacing them with stronger momentum companies. It's not a level playing field.

Stocks and deflation do not go together. Do not invest in the stock market or mutual funds in a deflationary crash. Go short! If your pension plan or 401-K lets you self direct - then sell those stocks and mutual funds and put the money in 90 day U.S. Treasury (T-Bills) money market funds. They don't pay much interest now. But, safety is what is important today. When they do pay interest it is compounded daily. Robert Prechter says interest rates on short term money may ramp back up to 15 to 20 percent or more like in the early 1980's. He says people and businesses will scurry around borrowing at high rates to stay afloat in the bad times to come. The only cure for inflation is deflation and cash is king in a deflation. Be Prepared!

Bonds or bond mutual funds or TIPS (treasury inflation protected securities-ha ha!) could loose value if interest rates rise or if the states, counties, cities and municipalities issuing them get into financial trouble due to drastic drops in tax revenue. They can't just print money like the federal government. What inflation? These are disinflation and deflationary times. Yet, at a recent sale of this inflation protected securities investors actually accepted a negative return to purchase them thinking inflation will come roaring back.

Interest rates could spike as investors and our creditors grow apprehensive about the soundness of America and the American government in the midst of the Greater Depression. You could get big capital gains losses with bonds. When interest rates go up bond values go the other way. Inverse! They are not for widows and orphans as touted. Beware! Again! When interest rates go up, the value of the underlying bond or derivate has a capital loss. The only way then to avoid a loss is to hold the security to maturity and collect the coupon or interest all those years and then receive the face amount of the bond on the maturity date. Otherwise, it is discounted per a formula based on original interest rate, current rates & years to maturity.

The 150 mega rich families that are the financial power elite of the world (that we all owe money) want a strong dollar since most of their assets are in America. They are the creditors. They are the one world government & new-world-order cradle to grave control protagonists. The Anglo financial power elite want to be Big Brother. We are their serfs, pawns and marionettes - their fools and jokers! The elite won't stand for much more inflation. Just like in the 1930's depression they are already cutting back on lending. These banksters will get richer. They have already sold much of their real estate and now will be selling and shorting stocks, bonds and commodities. Even gold may drop in half according to Robert Prechter, Author of "CONQUER THE CRASH."

Creditors are already clamping down on their lending. Interest rates are at major lows but rising slowly. That means few want to borrow any more. Money is on sale! People are fleeing other investments which is driving the yield on treasury bonds down and subsequently increasing their price. Only the most creditworthy borrowers with a big down payment get loans. Not a good sign.

The only good thing about deflation and stocks is governments at all levels will get de funded and have to tighten their belts. This means they may slow down ripping off our liberty and freedom. All credit inflations end with a nasty and brutal credit deflation. Stocks and deflation may mean a 90 per cent drop in prices by 2016. Be Prepared. Hurry the CRASH is coming!

"As government expands - liberty contracts" by Ronald Reagan

STOCKS AND DEFLATION

Stocks And Deflation update from Robert Prechter - Join Club EWI free at links get FREE 90 page "Deflation Guidebook"

Stocks and deflation - In a secular bear market. Stocks are in a right shoulder of a 13 year head and shoulder top. Neckline (line connecting lows is slanting down to right - a bearish technical). Intermediate term - waved out with 5 wave climax top in last stages of exhaustion. ALL THE SAME MARKET! This means Prechter's studies have found stocks, bonds, real estate and commodities are all running together. Per Prechter: The only bull market will be the US DOLLAR. Short gold & stocks (bonds=trouble)

Peak Oil (2005)! Bank Bailouts! Bank Closures! Flash Crash! These Bad Economic Times! Double Dip! This will be a big cyclical bear market washout. An investment in stocks and deflation could cause loss of your money and your retirement fund. What is deflation? Plan on the DOW going under 1,000 and gold dropping in half, according to Robert Prechter.

These pages will prove that the deflation trend started year 2000 with the dot com stock mania climax and bubble top. You could lose money big time as stocks lose 90 percent of their value by 2016 - 2018. There has been a 10 year head and shoulders top formation that proves stocks and deflation don't mix. In addition, if you draw a neckline, the straight line connecting the bottoms of stock index chart movements, you get a downward sloping line. This is a major bearish technical indicator. A secular bear market is in progress with a bear market (fools) rally currently in progress in 2011.

We are already 10 years into the GREATER DEPRESSION. If you don't believe me just look a a 10 year graph of the NASDQ Stock Exchange. Symbol QQQ. It has not gained back more than 60% of the drop from the top back in 2000. It is the NASDQ where the true growth companies of the world trade. They are the real job creators like Apple, Microsoft, Intel, Research In Motion etc. The Dow Jones Industrial average and the S & P 500(Standard and Poors) average are fudged by throwing out the weak companies and replacing them with stronger momentum companies. It's not a level playing field.

Stocks and deflation do not go together - do not invest in the stock market or mutual funds in a deflationary crash. Go short!

If your pension plan or 401-K lets you self direct - then sell those stocks and mutual funds and put the money in 90 day U.S. Treasury (T-Bills) money market funds. They don't pay much interest now. But, safety is what is important today. When they do pay interest it is compounded daily. Robert Prechter says interest rates on short term money may ramp back up to 15 to 20 percent or more like it was in the early 1980's. He says people and businesses will scurry around borrowing anyway they can and at high rates to stay afloat in the bad times to come.

Bonds or bond mutual funds or TIPS (treasury inflation protected securities) could loose value if interest rates rise or if the states, counties, cities and municipalities issuing them get into financial trouble. What inflation? These are deflationary times. Yet at a recent sale of these inflation protected securities investors actually accepted a negative return to purchase them thinking inflation will come roaring back.

The 1,000 families that are the financial power elite of the world (that we all owe money) want a strong dollar since most of their assets are in America. They are the creditors. They are the one-world-government & new-world-order protagonists, the Anglo financial power elite. They want to be Big Brother. We are their serfs, pawns and marionettes. Their fools and jokers! They won't stand for much more inflation. Just like in the 1930's depression they are already cutting back on lending. These banksters will get richer. They have already sold much of their real estate and now will be selling and shorting stocks, bonds and commodities. Even gold may drop in half according to Robert Prechter.

Creditors are already clamping down on their lending. Interest rates are at major lows but rising slowly. That means few want to borrow any more. Money is on sale! Only the most creditworthy borrowers with a big down payment get loans. Not a good sign.

Right now, the Anglo financial power elite will have already sold their real estate and will be holding cash in 90 day T-Bill's and money market funds. They will start shorting bonds and stocks and selling gold at this point of the long wave cycle. See: Kondratiev wave article about the long wave 70 to 80 year cycle that capitalist economies experience. They want deflation and a strong U.S. dollar. The elite plan to buy the bonds, stocks and real estate back at ninety percent discount in 2016 at 10 cents on the dollar! When it comes to stocks and deflation, you should do the same thing.

The same thing happened in the 1930's depression. Inflation in the roaring 20's of 10% per year in some years meant the money the bankers had lent out would be worthless in 10 years. They put on the brakes and called in their loans. They foreclosed on many properties. They got richer. This time it will be a worldwide Greater Depression three times larger and three times longer lasting than the last one. If you invest in the stock market, you may experience loss of the shares value when the companies they represent have big drops in sales and profits. Companies will lose money when the economy turns sour and sales slide. Yes, they will have to lay off more workers. Right now corporations are showing increased profits. This is probably a result of all the layoffs and belt tightening they have gone through in the past few years. THE PEOPLE LEFT HAVE TO DO MORE WORK. The rosy profit picture is not totally a result of their business actually being that much better. Have you noticed this at your company? Government stimulus has got the stock market up. Robert Prechter says his Elliot wave studies and his new study called socionomics, a marriage of sociology and economics, also show we are in the middle of a secular bear market. Stocks should start working lower in a wave C down. He has also found that there is a 7.25 year cycle in existence that may stall the big brutal bust and crash until 2012. Prechter says unemployment may eclipse 25 percent in 2016.

People are cutting back on purchases at all levels. Airplane orders are even down 25%. Besides, company profits are a lagging report. They are last quarter’s figures. What about this quarter and next?

When the selling of stocks starts, floods of sell orders hit the exchanges. Think of it as everyone trying to rush out a small door at once as prices crash. Mutual funds, insurance companies, pension plans and hedge funds are currently way over weighted in stock investments. We just had a "flash crash" of a 998 point drop in the DOW. All kinds of sellers and no buyers mean breathtaking drops. Many a person's pension plan, 401K and other retirement plan could get hurt in the years to come.

If you invest in the stock market you are buying little pieces of paper that represent ownership in corporations. Stock investment in growth companies is one of the ways capitalism funds it's growing businesses. That is a good thing. Corporations were supposed to pay dividends from profits back to the investors. What happened to that idea? Investing in the stock market morphed into not caring about dividend income to looking mainly for capital gains from increases in share price. How crazy is that? Better to have dividend income while you wait for the company to grow. Also, it's better to have a long term view. Lately, the reports corporations have given to stockholders have typically focused on the short term. This is not good long term strategic planning policy.

Everything is going to change in the next five years, however. In the Greater Depression, you can expect to see investments in the stock market sink 90% or more from peak. Risk is too great. Get into T-Bill and money market funds that only own T-Bills so you can sleep at nights. Cash will be king.

Re: investing in the stocks and deflation - instead go short stocks and buy short the market ETF's or bear funds. Some of these short-the-market instruments are products of Ishares and Proshares. You could get mega rich as the bear market crashes into 2016. Every $1 you put up could turn into $10. 70 years of up trend will be wiped out in 10 more years of deflation. Robert Prechter says the low will be 2016 with the DOW under 1,000 and possibly a washout low under Dow 500. It's 12,700 here in the middle of 2011. There are new short the market ETF's (exchange traded funds) along with bear mutual funds that let you stay short and never have a margin call. The ETF's trade just like stocks so the commissions are low. There is no management fee like in a mutual fund. Many are marketed under the groups sold by ProShares, iShares and Direxon. Some are even double short the market. The prices on these securities go up as stock prices in general go down.

A true short is when you arrange with your stockbroker to borrow shares and immediately sell them with the idea you will buy those shares back later at a lower price and keep the difference as your profit. When you actually go short a stock, it can only be done on an up tick in its price. This is an age old rule government thought up to try to control short selling after the 1930's crash. The trouble with the up-tick rule is markets need buyers at any darned price. Sometimes the only buyers are investors that are short seeking to cover their bet that the stock would go down. They need to get out of the position with their profit booked (earned). Shorting is not a bad thing as politicians would have you believe. Often, it is a way of directing public anger and attention away from the politicians over to the dastardly short sellers. A BIG LIE! A free market should not have this stupid up-tick rule. More government meddling!

Ask your broker about short the market ETF's - Exchange Traded Funds and bear market funds. Some even have put and call options. Some may be big gainers into year 2016 if the market crashes like Robert Prechter says it will. I believe him. He has not been wrong since he first said get stocks in 1982 for the last big run up before the Greater Depression. No one believed him back then.

Prechter even set an all time record in the United States Trading Championship contest in 1984. He earned 444.4% in a monitored real-money options account over a 4 month period. His 1995 book CREST OF THE TIDAL WAVE foretold the coming top in 2000. Robert Prechter's, CONQUER THE CRASH (2002 - but now updated) made it onto the New York Times Best Seller List. If you have not read it you are missing out on the true way the economic world and in fact nature itself works. Hurry and read it before it is too late! Get it used at Amazon.com at link above. Look up a 10 year chart of the ETF - Institutional Index (XII) if you don't believe me. It holds and tracks 75 stocks widely held by institutional portfolios in it's fund. Note - not a stock recommendation - only an economic example of chart behavior. It is a more honest valuation of the market in general than the Dow or S & P 500. These two indexes are always being changed and tinkered with. Weak stocks get thrown out and stronger companies stocks added. The top in the XII was year 2000 and the recovery high was the PERFECT FIBONACCI 61.8% price retracement level back in 2008. THIS IS PROOF WE ARE 10 YEARS INTO A SECULAR BEAR MARKET. The 2009 low was below the 2002 low in this index. Breaking a prior major low let's us know "THE SECOND SHOE WILL NOW DROP." SOON EVERYONE WILL BE AWARE WE ARE IN A MAJOR BEAR MARKET. WAVE # 3 DOWN IN ELLIOTT WAVE TERMINOLOGY IS STARTING. WAVE 3'S ARE ALWAYS THE LONGEST AND MOST VIOLENT OF THE 5 WAVE IMPULSIVE WAVE PATTERNS. Contact your broker for information on short the market and ultra short the market ETF'S and mutual funds - buy them and never run out of time. ETF's trade like stocks so you have lower commissions and they may have put and call options. Also, you can sell immediately - unlike mutual funds that wait until the end of the trading day to liquidate. Go to: www.bigcharts.com to see stock ETF and options data and price on a 15 minute delay.

The U.S. currently has an oversupply of natural gas. Prices are at historic lows. We should convert to using it. In fact, 20% of electrical production uses natural gas. Contact your broker about ETF's and mutual funds of natural gas company’s shares.

To learn more about using the Elliott Wave Principle in your investing get Robert Prechter's book, CONQUER THE CRASH. You get a free copy with paid subscription to his newsletter. Join Club EWI (Elliott Wave International) FREE at the links provided. Get FREE 90 page DOWNLOAD "Deflation Guidebook." Hurry before the crash! CLICK LINK BELOW!

The above commentary is meant to be economic in nature and not investment advice. For investment advice contact your broker or other registered advisor. Only one person in a million knows what is really going on in the world. Robert Prechter may be that one for you. FREE! Join Club EWI for free tutorials at links and banners on these pages.

Robert Prechter's study of stocks and deflation points to the year 2000 dot com stock mania bubble climax peak as the start of the Greater Depression. He says that was the top and now we are in a secular bear market. Robert Prechter also says the world downturn will not end until 2016 to 2018. At that time most of your assets may have lost 90% in price and unemployment could be 30%. Even the price of gold may drop in half. CASH IS KING in deflation. Japan has seen deflation for 20 years and now the rest of the world is catching the epidemic. You cannot stop the pendulum from swinging. Deflation continue until the inflation is wrung out of the system in this Greater Depression. Stocks and deflation mean a secular bear market started in 2000.

STOCKS AND DEFLATION - EXCHANGE TRADED FUNDS

These are U.S. listed ETF's (Exchange Traded Funds that tade like stocks) that averaged more than 100,000 units per day in the last 3 months of 2010. Only positioned for a bear market. List Only-Not A recommendation to buy or sell. Information only. Source: Futures Magazine March 2011 issue

Bear Market (Equity & Fixed Income) Avg. daily Assets 3-month ETF name Ticker F, O Fund family Exchange Fees volume (000s) ($M) return (NAV)

Direxion Daily Financial Bear 3X Shares FAZ F, O Direxion Funds NYSEArca 0.94% 33,136 1,030.00 -24.64%

ProShares UltraShort S&P500 SDS F, O ProShares NYSEArca 0.95% 26,376 2,660.00 -23.12%

Direxion Daily Small Cap Bear 3X Shares TZA F, O Direxion Funds NYSEArca 1.15% 20,334 694.36 -48.11%

ProShares UltraShort 20+ Year Treasury TBT F, O ProShares NYSEArca 0.95% 15,321 5,040.00 14.61%

ProShares UltraShort QQQ QID F, O ProShares AMEX 0.95% 11,230 755.62 -32.26%

ProShares UltraPro Short S&P500 SPXU F, O ProShares NYSEArca 0.95% 5,449 362.60 -33.07%

Direxion Daily Large Cap Bear 3X Shares BGZ F, O Direxion Funds NYSEArca 0.95% 5,375 249.43 -34.53%

ProShares UltraShort Russell2000 TWM F, O ProShares NYSEArca 0.95% 4,803 348.39 -34.62%

ProShares UltraShort Financials SKF F, O ProShares AMEX 0.95% 3,872 495.22 -16.71%

ProShares UltraShort DJ-UBS Crude Oil SCO O ProShares NYSEArca 0.95% 2,451 103.10 -24.56%

ProShares UltraShort Silver ZSL F, O ProShares NYSEArca 0.95% 2,407 76.54 -56.50%

ProShares Short S&P500 SH F, O ProShares AMEX 0.95% 2,291 1,970.00 -12.17%

ProShares UltraShort Real Estate SRS F, O ProShares AMEX 0.95% 2,199 315.32 -15.97%

ProShares UltraShort Euro EUO O ProShares NYSEArca 0.95% 1,915 464.68 -6.29%

ProShares UltraShort Dow30 DXD F, O ProShares AMEX 0.95% 1,781 438.06 -19.49%

Direxion Daily Emrg Mkts Bear 3X Shares EDZ F, O Direxion Funds NYSEArca 1.09% 1,411 N/A -33.49%

PowerShares DB Gold Double Short ETN DZZ - Deutsche Bank AG NYSEArca 0.75% 1,161 N/A -19.56%

Direxion Daily Energy Bear 3X Shares ERY F, O Direxion Funds NYSEArca 0.95% 1,101 54.49 -48.46%

Direxion Daily 20+ Yr Trsy Bear 3X Shrs TMV O Direxion Funds NYSEArca 1.13% 988 238.70 24.17%

ProShares UltraShort Basic Materials SMN F, O ProShares AMEX 0.95% 786 95.79 -33.98%

Direxion Daily Real Estate Bear 3X Shrs DRV F, O Direxion Funds AMEX 1.13% 719 71.76 -25.10%

ProShares UltraShort Yen YCS O ProShares NYSEArca 0.95% 615 214.48 -1.49%

ProShares UltraShort Oil & Gas DUG F, O ProShares AMEX 0.95% 613 105.87 -34.87%

ProShares Short QQQ PSQ F, O ProShares AMEX 0.95% 554 229.42 -17.45%

ProShares UltraPro Short QQQ SQQQ - ProShares NYSEArca 0.95% 548 N/A -44.73%

ProShares UltraShort FTSE China 25 FXP F, O ProShares AMEX 0.95% 538 204.46 -21.83

ProShares Short Russell2000 RWM F, O ProShares NYSEArca 0.95% 533 290.11 -18.73%

ProShares Short 20+ Year Treasury TBF - ProShares NYSEArca 0.95% 458 694.58 7.44%

ProShares UltraShort MSCI Emerging Mkts EEV F, O ProShares AMEX 0.95% 409 120.37 -22.91%

ProShares Short Dow30 DOG F, O ProShares NYSEArca 0.95% 341 277.23 -10.16%

Direxion Daily Technology Bear 3X Shares TYP F, O Direxion Funds NYSEArca 1.14% 328 51.78 -41.58%

ProShares UltraShort Gold GLL F, O ProShares NYSEArca 0.95% 314 81.10 -20.72%

PowerShares DB Crude Oil Dble Short ETN DTO - Deutsche Bank AG NYSEArca 0.75% 292 N/A -23.61%

ProShares UltraShort 7-10 Year Treasury PST O ProShares NYSEArca 0.95% 275 428.75 0.33%

PowerShares DB US Dollar Index Bearish UDN F, O PowerShares AMEX 0.5% 229 168.38 2.49%

Direxion Daily Dev Mkts Bear 3X Shrs DPK - Direxion Funds NYSEArca 1.13% 223 N/A -27.08%

ProShares UltraShort MSCI Europe EPV - ProShares NYSEArca 0.95% 215 69.10 -18.69%

PowerShares DB Gold Short ETN DGZ - Deutsche Bank AG NYSEArca 0.75% 210 N/A -10.19%

ProShares UltraShort MidCap400 MZZ F, O ProShares NYSEArca 0.95% 184 31.56 -30.52%

ProShares UltraPro Short Russell2000 SRTY - ProShares NYSEArca 0.95% 182 30.79 -48.06%

Direxion Daily Semicondct Bear 3X Shares SOXS - Direxion Funds NYSEArca 0.95% 135 N/A -55.38%

ProShares UltraShort Semiconductors SSG F, O ProShares NYSEArca 0.95% 116 21.93 -40.68%

iPath Inverse S&P 500 Vix S/T Fut ETN XXV - iPath NYSEArca 0.89% 110 N/A 28.71%

ProShares UltraShort MSCI Brazil BZQ - ProShares NYSEArca 0.95% 103 21.81 -21.72%

Stocks and Deflation

Stocks and Deflation - continued

3 Reasons Now is Not the Time to Speculate in Stocks Sometimes the investment weather forces you to 'buy a coat,' says Robert Prechter August 31, 2010 By Elliott Wave International

When it's sunny, you head outside without a thought, but when it's rainy, you look for your umbrella.

When the markets are trending up, you don't worry about your investments much, but when the markets turn bearish ... what do you do?

In an interview with Jeff Sommer of The New York Times in July 2010, Robert Prechter said that he is convinced that a "market decline of staggering proportions" is on its way, and that individual investors should get out of the market and into cash and cash equivalents, such as Treasury bills.

"I'm saying: 'Winter is coming. Buy a coat,'" Prechter said. "Other people are advising people to stay naked. If I'm wrong, you're not hurt. If they're wrong, you're dead. It's pretty benign advice to opt for safety for a while."

Read some of the latest nuggets directly from Elliott Wave International President Robert Prechter's desk -- FREE. Click here to download a free report packed with recent analysis and forecasts from Prechter's Elliott Wave Theorist.

For more specific advice as to why now is not the right time to speculate in stocks, here's an excerpt from chapter 20 of Prechter's business best-selling book, Conquer the Crash -- You Can Survive and Prosper in a Deflationary Depression, 2nd edition 2009.

* * * * *

Should You Speculate in Stocks?

Perhaps the number one precaution to take at the start of a deflationary crash is to make sure that your investment capital is not invested “long” in stocks, stock mutual funds, stock index futures, stock options or any other equity-based investment or speculation. That advice alone should be worth the time you spent to read this book.

1. Stocks May Go to Near Zero

In 2000 and 2001, countless Internet stocks fell from $50 or $100 a share to near zero in a matter of months. In 2001, Enron went from $85 to pennies a share in less than a year. These are the early casualties of debt, leverage and incautious speculation. Countless investors, including the managers of insurance companies, pension funds and mutual funds, express great confidence that their “diverse holdings” will keep major portfolio risk at bay. Aside from piles of questionable debt, what are those diverse holdings? Stocks, stocks and more stocks. Despite current optimism that the bull market is back, there will be many more casualties to come when stock prices turn back down again.

2. Stock Mutual Funds Will Fall, Too

Not only will many stocks fall 90 to 100 percent, but so will a substantial number of stock mutual funds, which cannot exit large equity positions without depressing prices and which have the added burden to you of one percent (or more) annual management fees. The good news is that we will finally find out who the few truly good fund managers are and which ones were heroes by virtue of being around for a bull market.

3. The Fed Won't Be Able To Save the Stock Market

Don’t presume that the Fed will rescue the stock market, either. In theory, the Fed could declare a support price for certain stocks, but which ones? And how much money would it commit to buying them? If the Fed were actually to buy equities or stock-index futures, the temporary result might be a brief rally, but the ultimate result would be a collapse in the value of the Fed’s own assets when the market turned back down, making the Fed look foolish and compromising its primary goals, as cited in Chapter 13. It wouldn’t want to keep repeating that experience. The bankers’ pools of 1929 gave up on this strategy, and so will the Fed if it tries it.

Read some of the latest nuggets directly from Elliott Wave International President Robert Prechter's desk -- FREE. Click here to download a free 90 page "What Is Deflation" report packed with recent analysis and forecasts from Prechter's Elliott Wave Theorist.

This article was syndicated by Elliott Wave International and was originally published under the headline 3 Reasons Now is Not the Time to Speculate in Stocks. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

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