{"id":48494,"date":"2014-03-15T12:52:02","date_gmt":"2014-03-15T16:52:02","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=48494"},"modified":"2014-03-15T12:52:02","modified_gmt":"2014-03-15T16:52:02","slug":"biggest-bubble-ever-marks-5th-year-stock-rally","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/03\/15\/biggest-bubble-ever-marks-5th-year-stock-rally\/","title":{"rendered":"Biggest Bubble Ever Marks 5th Year of Stock Rally"},"content":{"rendered":"<h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\">Dallas Fed president: Asset-price bubble &#8220;may result in tears&#8221; for investors <\/span><\/h3>\n<h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\">By Elliott Wave International<\/span><\/h3>\n<p>Editor&#8217;s note: You will find a text version of this story below the video.<\/p>\n<p align=\"center\"><span class=\"LimelightEmbeddedPlayer\"><script type=\"text\/javascript\" src=\"http:\/\/video.limelight.com\/player\/embed.js\"><\/script><object id=\"limelight_player_946711\" width=\"620\" height=\"401\" classid=\"clsid:d27cdb6e-ae6d-11cf-96b8-444553540000\" codebase=\"http:\/\/download.macromedia.com\/pub\/shockwave\/cabs\/flash\/swflash.cab#version=6,0,40,0\" name=\"limelight_player_946711\"><param name=\"wmode\" value=\"window\" \/><param name=\"allowScriptAccess\" value=\"always\" \/><param name=\"allowFullScreen\" value=\"true\" \/><param name=\"flashVars\" value=\"channelId=0d5c646cda2f47e59f15d3f732f90b91&amp;playerForm=b549182c27004e88b54afaf008c55c81&amp;deepLink=true&amp;defaultQuality=900\" \/><param name=\"src\" value=\"http:\/\/video.limelight.com\/player\/loader.swf\" \/><param name=\"allowscriptaccess\" value=\"always\" \/><param name=\"allowfullscreen\" value=\"true\" \/><param name=\"flashvars\" value=\"channelId=0d5c646cda2f47e59f15d3f732f90b91&amp;playerForm=b549182c27004e88b54afaf008c55c81&amp;deepLink=true&amp;defaultQuality=900\" \/><embed id=\"limelight_player_946711\" width=\"620\" height=\"401\" type=\"application\/x-shockwave-flash\" src=\"http:\/\/video.limelight.com\/player\/loader.swf\" wmode=\"window\" allowScriptAccess=\"always\" allowFullScreen=\"true\" flashVars=\"channelId=0d5c646cda2f47e59f15d3f732f90b91&amp;playerForm=b549182c27004e88b54afaf008c55c81&amp;deepLink=true&amp;defaultQuality=900\" allowscriptaccess=\"always\" allowfullscreen=\"true\" flashvars=\"channelId=0d5c646cda2f47e59f15d3f732f90b91&amp;playerForm=b549182c27004e88b54afaf008c55c81&amp;deepLink=true&amp;defaultQuality=900\" name=\"limelight_player_946711\" \/><\/object><script type=\"text\/javascript\">\/\/ <![CDATA[\nLimelightPlayerUtil.initEmbed('limelight_player_946711');\n\/\/ ]]><\/script><\/span><\/p>\n<div style=\"text-align: center; background-color: #000000; color: #ffffff; font-size: 15px; font-weight: bold; padding: 10px;\">Start your free 2-week trial of our <em>Financial Forecast Service<\/em> now. <a href=\"http:\/\/www.elliottwave.com\/products\/ffs\/Financial-Forecast-Service-Two-Week-Free-Trial.aspx?code=FRSTOCKS&amp;articleid=@articleid\"><span style=\"color: #06c;\">Learn more \u00bb<\/span><\/a><\/div>\n<p>Lehman Brothers, Washington Mutual, Bear Stearns and many smaller financial firms failed during the subprime mortgage meltdown.<\/p>\n<p>The next financial flameout will likely be more destructive than what occurred between 2007 and 2009.<\/p>\n<p>Granted, that is a dire forecast, given that the previous financial crisis was the most severe since the Great Depression.<\/p>\n<p>But with the stock market rally near a five-year milestone, EWI&#8217;s indicators suggest even greater risks vs. what we saw at the 2007 market peak.<\/p>\n<p>You&#8217;ll recall that the stock market topped in October 2007. But at the start of that year, most investors had the attitude of &#8220;full steam ahead.&#8221; Even so, the <i>Elliott Wave Financial Forecast<\/i> gave subscribers a warning. Here&#8217;s an excerpt from the January 2007 issue:<\/p>\n<blockquote><p><b>2007: THE YEAR OF FINANCIAL FLAMEOUT<\/b><\/p>\n<p>When investors are optimistic, confidence remains high and liquidity expands &#8230; But they celebrate the condition and come to view it as a &#8220;self-sustaining&#8221; virtue only when it is nearly over.<\/p><\/blockquote>\n<p>Several sentiment measures say that today&#8217;s optimism is as high or higher. Even so, lopsided sentiment is just one red flag. The just-published March <i>Financial Forecast<\/i> warns of an even bigger financial flameout.<\/p>\n<p>Even the head of a Federal Reserve Bank is talking about a bubble.<\/p>\n<blockquote><p>Dallas Fed President Richard Fisher amplified some lingering concerns that the central bank&#8217;s policy stimulus is stoking asset-price bubbles that &#8220;may result in tears&#8221; for investors acting on bad incentives&#8230;<\/p>\n<p>&#8220;I fear that we are feeding imbalances similar to those that played a role in the run-up to the financial crisis,&#8221; he said.<\/p>\n<p align=\"right\"><i>Reuters<\/i>, March 5<\/p>\n<\/blockquote>\n<p>The just-published <i>Financial Forecast<\/i> gives you insight into the nation&#8217;s staggering credit expansion, and tells you about &#8220;a leading signal of an impending credit contraction,&#8221; which is flashing a bigger warning than it did in 2007!<\/p>\n<p>Indeed, the first chart in the issue shows unequivocal evidence that the United States may face the biggest financial bubble in the country&#8217;s history.<\/p>\n<p>Review that chart and the entire issue for free.<\/p>\n<p><a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa410&amp;dy=aa031214&amp;url=http:\/\/www.elliottwave.com\/products\/ffs\/Financial-Forecast-Service-Two-Week-Free-Trial.aspx?code=AFF%26articleid=4651\">The March 2014 <i>Financial Forecast<\/i> is the best read on Wall Street and you can have it on your computer screen for two weeks at <b>no charge.<\/b> Learn more about your FREE two-week trial by following this link.<\/a><\/p>\n<div>\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\"><em>This article was syndicated by Elliott Wave International and was originally published under the headline <a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa410&amp;dy=aa031214&amp;url=http:\/\/www.elliottwave.com\/freeupdates\/archives\/2014\/03\/10\/Biggest-Bubble-Ever-Marks-5th-Year-of-Stock-Rally.aspx\"><strong>Biggest Bubble Ever Marks 5th Year of Stock Rally<\/strong><\/a>. EWI is the world&#8217;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.<\/em><\/p>\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\">\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\">\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\">\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\">\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dallas Fed president: Asset-price bubble &#8220;may result in tears&#8221; for investors By Elliott Wave International Editor&#8217;s note: You will find a text version of this story below the video. Start your free 2-week trial of our Financial Forecast Service now. Learn more \u00bb Lehman Brothers, Washington Mutual, Bear Stearns and many smaller financial firms failed &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2014\/03\/15\/biggest-bubble-ever-marks-5th-year-stock-rally\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Biggest Bubble Ever Marks 5th Year of Stock Rally&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-48494","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/48494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=48494"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/48494\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=48494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=48494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=48494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}