EURUSD - Trends, Forecasts and Implications (Part 2) - page 1801

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Mail from Glenn Neely, I think I agree with him :)...


February 22, 2011 - Today, the U.S. stock market experienced a major selloff, falling more than 2%. According to Glenn Neely, Wave theory expert and founder of NEoWave Institute, this confirms the end of the rally off November 30, 2010's low and probably the end of the bull market that began at 2009's low.

Recently, Mr. Neely warned subscribers to the NEoWave Trading and Forecasting services that a "major event" was on the horizon. In preparation, Mr. Neely instructed trading customers to go Short, right at last Friday's high and clsoe, which is currently the top-tick of the month!

Applying NEoWave's advanced market confirmation techniques, Mr. Neely explains that today's collapse confirms the end of an old pattern and the start of a new one. This new pattern suggests a 1- to 2-year bear market has begun and will likely result in a 30+% drop in market valuation.

While economic conditions have improved greatly since 2009's low, NEoWave warns a new downturn (lasting 1- to 2-years) is beginning. As is always the case, markets anticipate future economic reality. While news has been improving, the wave structure warns the U.S. stock market has turned a corner, setting the stage for an "echo" of the 2008/2009 financial crisis - but this time with a new twist. Instead of financial institutions and real estate markets being devastated, Mr. Neely suspects the most likely justification for this future market decline will be severe financial problems for federal, state and local governments. The result could be local and national transportation disruptions, public service problems and government employee layoffs around the country. Other circumstances that might justify a 30+% decline in the stock market could be a substantial increase in the cost of energy or a drastic increase in the value of the U.S. dollar (i.e. deflation).

 
Pavel447:

Mail from Glenn Neely, I think I agree with him:)...

Why are you so Russian-speaking? A lot of people are interested.

OK, in my own words about the content of the text.....

February 22, 2011 - Today, the US stock market experienced a major sell-off of more than 2%. According to Glenn Neely, WaveTheory expert and founder of the NEoWave Institute , the end of the market with an uptrend that started in 2009 is confirmed.A 1 or 2 year downward trend is coming and will probably lead to a 30% decline.NEoWave warns that a new downturn will last1-2 years . While the news was good, the wave structure warned that the US stock market is about to turn around, preparing the ground to echo the 2008-09 financial crisis - but this time with a new twist. Mr. Neely suspects that the circumstances which could justify a 30% decline in the stock market could be a significant increase in energy costs or a decisive increase in the purchasing power of the US dollar . The crisis will mainly affect public institutions. layoffs will follow, etc. deflation is coming.

 

Looked up the meaning of Deflation. Here, what the beast is.....))))

Who can explain in simple terms, buy or sell. That would be good.

Deflation (from Latin deflatio - deflation) is an increase in the purchasing power of the local currency, which manifests itself in a decline in the price index. It is usually regarded as a less favourable factor than inflation.

The cause of deflation can be:

  • An increase in the value of money. Usually associated with an increase in the cost of producing a monetary good in a natural money economy (e.g. an increase in the labour intensity of gold mining under the gold standard).
  • A decrease in the value of many goods due to an increase in labour productivity, but with the value of money unchanged.
  • A shortage of money in circulation, which is analogous to an artificial increase in the value of money. This tool is now used most frequently, especially after the abandonment of the gold standard. This kind of deflation is caused by the central bank and government removing the money supply from circulation in order to reduce inflation by raising the discount rate, increasing taxes, preventing wage growth or freezing it, reducing state budget spending, credit retrenchment (credit reduction) by increasing the sale of government securities, etc.

In modern conditions, deflation indicates a decline in the economy, a reduction in output and an increase in unemployment. Due to falling prices, economic agents may reduce the volume of investments so that after some time (several years) they can invest more profitably (buy resources cheaper as a result of falling prices). This leads to an additional drop in demand, which further stimulates a fall in the price of goods and a reduction in production.

Deflationary policy implies demand management through monetary and fiscal mechanisms:

 
Zet:

Looked up the meaning of Deflation. Here, what the beast is.....))))

Who can explain in simple terms, buy or sell. That would be good.

Deflation (from Latin deflatio - deflation) is an increase in the purchasing power of the local currency, which manifests itself in a decline in the price index. It is usually considered less favourable than inflation.

The cause of deflation can be:

  • An increase in the value of money. Usually associated with an increase in the cost of producing a monetary good in a natural money economy (e.g. an increase in the labour intensity of gold mining under the gold standard).
  • A decrease in the value of many goods due to an increase in labour productivity, but with the value of money unchanged.
  • A shortage of money in circulation, which is analogous to an artificial increase in the value of money. This instrument is now the most frequently used, especially after the abandonment of the gold standard. This type of deflation is caused by the central bank and government removing the money supply from circulation in order to reduce inflation by raising the discount rate, increasing taxes, preventing wage growth or freezing it, reducing state budget spending, credit retrenchment (credit reduction) by increasing the sale of government securities, etc.

In modern conditions, deflation indicates a decline in the economy, a decrease in output and an increase in unemployment. Due to falling prices, economic agents may reduce the volume of investments so that after some time (several years) they can invest more profitably (buy resources cheaper as a result of falling prices). This leads to an additional drop in demand, which further stimulates a fall in the price of goods and a reduction in production.

Deflationary policy implies demand management through monetary and fiscal mechanisms:

  • reducing public expenditures;
  • an increase in the interest rate on credit;
  • increasing the tax burden;
  • limiting the money supply.

Put simply:

Deflation is when there is a lot of money and nothing to buy. Deflation was common in the USSR in the 80s and early 90s. The whole nation dumped all the money into the Savings Bank and bang... The USSR collapsed. The money left in the hands of the people became worthless, because h/after a while there was inflation and the money was devalued.

 
margaret:

Put it simply:

Deflation is when there is a lot of money and nothing to buy. Deflation was common in the USSR in the 80s and early 90s. The whole nation dumped all the money into the sberbank and bang... The USSR collapsed. The money left in the hands of the people became worthless, because h/after a while there was inflation and the money was devalued.


Got it, thank you.

 
Zet:


Got it, thank you.

Happy holiday to you!


 
margaret:

Happy Holidays!


A BIG THANK YOU (gift to you)....))))))))))
 
Zet:

A BIG THANK YOU (gift to you)....))))))))))
What a beauty!!! I wish I had a barrette like that... Thank you!
 
margaret:
What a beauty!!! I wish I had a barrette like that... Thank you!

:+)))
 

So it seems. IMHO.

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