Don't Get Ruined by These 10 Popular Investment Myths (Part IV)

Interest rates, oil prices, earnings, GDP, wars, terrorist attacks, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that during the 2008-2009 financial crisis, many called into question traditional economic models.

Why did the traditional financial models fail? And more importantly, will they warn us of a new approaching doomsday, should there be one?

This series gives you a well-researched answer.

Here is Part IV; come back soon for Part V.

Myth #4: "Earnings drive stock prices."

By Robert Prechter (excerpted from the monthly Elliott Wave Theorist; published since 1979)

This belief powers the bulk of the research on Wall Street. Countless analysts try to forecast corporate earnings so they can forecast stock prices. The exogenous-cause [i.e., news-driven -- Ed.] basis for this research is quite clear: Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part IV)"

Don't Get Ruined by These 10 Popular Investment Myths (Part III)

Interest rates, oil prices, earnings, GDP, wars, terrorist attacks, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By Elliott Wave International

You may remember that during the 2008-2009 financial crisis, many called into question traditional economic models. Why did the traditional financial models fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

That's a crucial question to your financial well-being. This series gives you a well-researched answer.

Here is Part III; come back soon for Part IV.

Myth #3: "Expanding trade deficit is bad for economy -- and bearish for stocks."

By Robert Prechter (excerpted from the monthly Elliott Wave Theorist; published since 1979)

Over the past 30 years, hundreds of articles -- you can find them on the web -- have featured comments from economists about the worrisome nature of the U.S. trade deficit. It seems to be a reasonable thing to worry about.

But has it been correct to assume throughout this time that an expanding trade deficit impacts the economy negatively?

Figure 8 answers this question in the negative: Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part III)"

Don't Get Ruined by These 10 Popular Investment Myths (Part II)

Interest rates, oil prices, earnings, GDP, wars, terrorist attacks, inflation, monetary policy, etc. -- NONE have a reliable effect on the stock market

By: Elliott Wave International

You may remember that during the 2008-2009 financial crisis, many called into question traditional economic models. Why did the traditional financial models fail?

And more importantly, will they warn us of a new approaching doomsday, should there be one?

That's a crucial question to your financial well-being. This series gives you a well-researched answer.

Here is Part II; come back soon for Part III. Continue reading "Don't Get Ruined by These 10 Popular Investment Myths (Part II)"