Elliott Wave Courses | by ForexCycle.com | Saturday, 15 March 2014 13:58 UTC
By Elliott Wave International
Editor's note: You will find a text version of this story below the video.
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Lehman Brothers, Washington Mutual, Bear Stearns and many smaller financial firms failed during the subprime mortgage meltdown.
The next financial flameout will likely be more destructive than what occurred between 2007 and 2009.
Granted, that is a dire forecast, given that the previous financial crisis was the most severe since the Great Depression.
But with the stock market rally near a five-year milestone, EWI's indicators suggest even greater risks vs. what we saw at the 2007 market peak.
You'll recall that the stock market topped in October 2007. But at the start of that year, most investors had the attitude of "full steam ahead." Even so, the Elliott Wave Financial Forecast gave subscribers a warning. Here's an excerpt from the January 2007 issue:
Several sentiment measures say that today's optimism is as high or higher. Even so, lopsided sentiment is just one red flag. The just-published March Financial Forecast warns of an even bigger financial flameout.
Even the head of a Federal Reserve Bank is talking about a bubble.
The just-published Financial Forecast gives you insight into the nation's staggering credit expansion, and tells you about "a leading signal of an impending credit contraction," which is flashing a bigger warning than it did in 2007!
Indeed, the first chart in the issue shows unequivocal evidence that the United States may face the biggest financial bubble in the country's history.
Review that chart and the entire issue for free.
The March 2014 Financial Forecast is the best read on Wall Street and you can have it on your computer screen for two weeks at no charge. Learn more about your FREE two-week trial by following this link.
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