Elliott Wave Courses | by ForexCycle.com | Sunday, 10 August 2014 07:24 UTC
By Elliott Wave International
Stock market investors who glance at their screens see the dollar value of the Dow Industrials.
Another way -- the way Elliott Wave International (EWI) prefers -- is real value, in terms of the things you can actually buy with your Dow shares, such as real money (gold) or a basket of commodities.
Clearly, one could ask: "Why is the Dow priced in real value important? I buy things with dollars."
Let's look briefly at the nominal (dollar valued) Dow vs. the real Dow. Then we can address why the Dow measured in real value matters.
On July 16, the nominal Dow reached an all-time closing high of 17,138.20.
The value of the real Dow is not even close. Indeed, you may be in for a shock.
Robert Prechter, founder and president of EWI, calls the collapse in the real value the "Silent Crash."
The December 2006 Elliott Wave Theorist explains why the value of the real Dow matters. Take a look at this chart [updated in July 2008] and read the commentary:
The set-up today is much bigger.
Prepare now for what EWI sees ahead by reading a special report for investors just like you, titled, "The Nominal Dow: The Biggest Lie in Stock Market History." This must-read report is 100% free. See below for more details.
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