Of all the belief systems of Wall Street, few can claim the devoted following of the Efficient Market Hypothesis, the idea that stock prices adhere to the same laws of supply-and-demand that govern retail products. Once coined the theoretical “Parthenon” of economics, this notion has consistently endured the test of time —– until now. Academics and advisors across the globe are currently exposing crack after crack in the “Efficient” model so deep as to bring the entire theory crashing to the ground.
“The EMH is not only dead,” writes a July 29, 2010 news source.
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There is a change that the strong second quarter growth and export numbers from Germany (and the EMU) are just reflecting the peak in activity with regard to economic data. This was reinforced by today’s ZEW survey in Germany, which showed confidence among investors about Germany’s economic prospects falling to a lower than expected 16-month low. The index of economic sentiment from a survey asking for predictions of conditions in six months time fell to 14 from 21.2 in July. Expectations where for a index reading of 20. The index measuring the current situation was far more robust, as one would expect, jumping to 44.3 from 14.6 in July. An index reading of 24 was expected. The real
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AUDUSD
I think we already passed its top 2 weeks ago.
I see 0.85, then 0.83 comming soon in next month, which is september 2010.
Now both australia’s export incomes from china AND debt/household in australia are building problems of AUD strength,Then we will see AUDUSD go down more to 0.83 very soon in september 2010.
SHORT
downside target 0.85 at least , then 0.83critical stop loss 0.9300
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“Fed’s Bullard Raises Specter of Japanese-Style Deflation,” read a July 29 Washington Post headline.
When the St. Louis Fed Chief speaks, people listen. Now that deflation — something that EWI’s president Robert Prechter has been warning about for several years — is making mainstream news headlines, is it too late to prepare?
It’s not too late.
There are still steps you can take if deflation is indeed in our future. The first step is to understand what it is. So we’ve put together a special, free, 60-page Club EWI resource, “The Guide to Understanding Deflation: Robert Prechter’s most important warnings about deflation.” Enjoy this quick excerpt. (For details
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