A
must-read FREE Elliott Wave International report for investors in
fixed-income markets like
Treasury bonds, municipal bonds or high-yield bonds
Elliott
wave analysis can warn you of trend changes when the rest of the
investment public least expects a market reversal. With that in mind,
we have created a new report for our free Club EWI members: "The Next
Major Disaster Developing for Bond Holders."
In this free report,
you get some of the latest commentary on fixed-income markets adapted
from various Elliott Wave International's publications, including 2010
issues of Robert Prechter's monthly Elliott
Wave Theorist and
its sister publication, The
Elliott Wave Financial Forecast.
Enjoy this excerpt -- and for details
on how
to read this important Club EWI report free, today, look below.
The
Next Major Disaster Developing for Bond Holders
(excerpt)
The Elliott Wave Theorist --
October 2010
(By Robert Prechter, EWI president)
...History
shows that investors have been attracted like moths to a flame to four
consecutive pyres: the NASDAQ in 2000, real estate in 2006, the blue
chips in 2007 and commodities in 2008. Now they are flitting across the
veranda to a mesmerizing blue flame: high yield bonds. Bonds pay high
yields when the issuers are in deep trouble and cannot otherwise
attract investment capital. The public is chasing a large return on
capital without considering return of it. ...
The
Elliott Wave Financial
Forecast --
October 2010
(By Steve Hochberg and Pete Kendall)
The
rise in optimism since early 2009 has allowed corporations to issue the
lowest grade debt at a record rate, even more than in the middle of the
incredible expanding debt bubble of the mid-2000s. The annual total of
$189.9 billion to date is a record, and the entire fourth quarter still
lies ahead.
This is a stunning testimony to just
how
desperate
investors are for the returns they grew so accustomed to during the old
bull market. The Moody’s BAA-to-Treasury spread (see chart in the free
report -- Ed.) has been widening since [April] and has made a series of
lower highs in August and again in September. This behavior reveals an
emerging preference for perceived safer debt even as junk bond issuance
races higher. It is a critical non-confirmation...
This
article was syndicated by Elliott Wave International and was originally
published under the headline The
Next Major Disaster Developing for Bond Holders.
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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