{"id":170376,"date":"2020-05-12T08:05:16","date_gmt":"2020-05-12T12:05:16","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=170376"},"modified":"2020-05-11T18:37:06","modified_gmt":"2020-05-11T22:37:06","slug":"why-financial-trouble-brews-on-the-home-front","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/05\/why-financial-trouble-brews-on-the-home-front\/","title":{"rendered":"Why Financial Trouble Brews on the “Home” Front"},"content":{"rendered":"
May 12, 2020<\/div>
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By Elliott Wave International
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The world has been hearing a lot about “homes” in recent months, as in — “stay there” to help halt the spread of COVID-19.<\/p>\n

At the same time, the sales of those homes in the U.S. have seen a significant slowdown.<\/p>\n

No doubt about it, the coronavirus has played a big role. Yet, a notable divergence was taking shape in the housing market long before the current pandemic.<\/p>\n

Financial history shows that it’s happened before.<\/p>\n

Around the time of the prior housing bubble peak, the January 2006 Elliott Wave Financial Forecast<\/em>, which is an Elliott Wave International monthly publication that mainly focuses on U.S. markets, the economy and cultural trends, noted:<\/p>\n

Home sales are falling across the board now, but “virtually no investors expect sudden burst of housing bubble,” says the headline of a UBS\/Gallup Poll of investor attitudes: “Just 1% of all investors expect housing prices next year to exhibit a rapid decline.” This sentiment is bearish for real estate prices.<\/p>

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Free Reports:<\/p><\/div>\r\n

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<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

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Indeed, U.S. housing prices topped later in 2006. Lower home prices followed slowing sales.<\/p>\n

Fast forward to this chart and commentary from the May 2020 Elliott Wave Financial Forecast<\/em>:<\/p>\n

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The top graph on the chart shows the median price paid for houses sold in the U.S. … In addition to the terminal five-wave form of the rise, a key to the forecast is seen on the bottom graph. It shows the dramatic divergence in home sales, which retraced just 45% of the 2005-2010 decline.<\/p>\n

Individual homeowners would not be the only group hurt if real estate prices fell. Also be aware of this notable factoid and comment from the August 2019 Elliott Wave Theorist<\/em>:<\/p>\n

Since 2012, private equity firms have been buying an average of 10% of the annual inventory of properties for sale in the U.S. They now own huge portfolios of homes worth hundreds of billions of dollars.<\/p>\n

You’ve just seen the Elliott wave count of U.S. median home sale prices.<\/p>\n

Other financial markets are also at crucial junctures, so this is an ideal time to learn how to apply the Elliott wave method yourself.<\/p>\n

Yes, the learning process does require work, but it’s worth it.<\/p>\n

As Elliott Wave Principle: Key to Market Behavior<\/em> states:<\/p>\n

All one really needs to know at the time<\/em> is whether to be long, short or out, a decision that can sometimes be made with a swift glance at a chart and other times only after painstaking work.<\/p>\n

If you’re ready to learn, tap into the insights of The Wave Principle Applied<\/a>, which is a 1-hour course that you can access for free through May 15 by joining Club EWI (membership is also free).<\/p>\n

Keep in mind that Elliott Wave International normally sells this course for $99, so take advantage of this limited-time opportunity<\/strong> to learn how to spot Elliott wave patterns on chart patterns of financial markets — 100% free.<\/p>\n

Here’s the link that gets you started: The Wave Principle Applied.<\/a><\/p>\n

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By Elliott Wave International The world has been hearing a lot about “homes” in recent months, as in — “stay there” to help halt the spread of COVID-19. At the same time, the sales of those homes in the U.S. have seen a significant slowdown. No doubt about it, the coronavirus has played a big […]<\/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-170376","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=170376"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170376\/revisions"}],"predecessor-version":[{"id":170377,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170376\/revisions\/170377"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=170376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=170376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=170376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}