Bill Gross on Deflation, Stocks, and Bob Prechter’s Debt Destruction

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Bond legend Bill Gross shared his latest outlook with CNN Money – and I was glad to see him weigh in on deflation in particular: What about the possibility of deflation occurring? We’re in a struggle between inflation and deflation right now. We may never get to a negative consumer price index, but the danger […]

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But – Dr. Doom does not dismiss Prechter’s call altogether (Details on Prechter’s latest predictions here).  CNBC reports on Faber’s outlook in his August 2010 Doom, Boom, Gloom Report newsletter: Marc Faber says before dismissing Prechter as a lunatic you should look at his record. In 1978 when he predicted the Dow would reach 2,300 […]

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Earlier today, we pointed to a nice piece of analysis from fund manager John Hussman, who essentially told stock market bulls to “get a grip on reality”, because the S&P is 40% overvalued according to his calculations. To me, this is the crux of the entire bull/bear argument. Beyond technicals, or earnings, or anything – […]

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This headline is starting to become a recurring theme.  US consumer credit is in freefall – because, as we all know, the American consumer is FLAT BROKE! BusinessWeek reports: Consumer borrowing in the U.S. dropped in May more than forecast, a sign Americans are less willing to take on debt without an improvement in the […]

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Today, US stocks were not successful in issuing a counterpunch to yesterday’s bloodbath, when there were 11 stocks down for every 1 up.  Stocks staged a meager rally after opening – only to swoon late and close at new lows for 2010. As you can see from the chart below, the S&P 500 peaked in […]

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Robert Prechter was Jim Puplava’s guest this week on the Financial Sense Newshour.  You can listen to the entire interview here – it’s almost an hour long, and it’s fantastic. Ed. Note: You can also read a full transcript of the interview here, courtesy of our friends at Elliott Wave International. Prechter last chatted with […]

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What exactly causes deflation – and more specifically – debt deflation?  It’s something few investors seem to have a solid grasp of. Debt deflation sinks in when there is a lot of debt outstanding – and it goes unpaid, up to “money heaven”  – never to be heard from again.  Japan has been in a […]

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Robert Prechter: Gold isn’t the safe haven many think The euro’s recent loss has been the dollar’s gain, which means that it’s not the best time to buy the U.S. dollar. Meanwhile, the most popular alternative to currencies, gold, isn’t such a good buy either. Watch the excerpt from Robert Prechter’s May 20 interview with […]

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When it comes to deflation analysis, nobody does it better than Robert Prechter and his team at Elliott Wave International.  The folks at EWI were kind enough to let us syndicate this excerpt from Bob’s recent Theorist newsletter, highlighting deflationary signs that the average investor may be missing. Signs of Deflation You Might Not be […]

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Fantastic post over at Pragmatic Capitalism about what the current rally in the US dollar means in the ongoing inflation vs deflation tug-of-war: If the chart below doesn’t grab your attention then few things will. In my opinion, the performance of the dollar is the surest evidence of the kind of environment we’re currently in. […]

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