Alan’s Money Blog

Dear Investor,

Please recall with me the prevailing investor sentiment from this time last year …

U.S. stocks had been in strong decline for more than a year. Some of the most celebrated bulls had turned into bears, and the few bears that did exist before the downturn had become even more bearish. The Daily Sentiment Index for the S&P registered an astonishing 3 percent bulls — virtually no one was betting on the upside — and the bleakest of forecasts for 2009 called for nothing short of financial apocalypse.

But well-known contrarian analyst Robert Prechter took the opposite side of the trade. Prechter, a long-time bear, emerged as a solitary bullish voice among overwhelming bearishness. After closing out a record short recommendation that gained 800 downside points in the S&P, he issued the following bullish warning to bears:

“The market is compressed, and when it finds a bottom and rallies, it will be sharp and scary for anyone who is short.”

In the following days, the mainstream media reported that “perma-bear” Robert Prechter had turned bullish — the reports were only half true. Prechter had, in fact, turned intermediate-term bullish, but he stopped short of recommending average investors to jump back in. Why?

Prechter saw something on the horizon that the shortsighted mainstream market watchers did not, which brings me to the untold portion of this story …

In Prechter’s eyes, the bear market is far from over, and what he expects to happen after the current rally ends is significantly important to how you position your portfolio now.

Prechter’s firm, Elliott Wave International, is now offering for a limited time The Most Important Investment Report You’ll Read in 2010. Inside, Prechter reveals his big-picture outlook for U.S. stocks and the U.S. economy. The eye-opening 13-page report, originally published for paying subscribers to his Elliott Wave Theorist, examines the government’s unprecedented involvement in the financial markets and private enterprise. It reveals what’s already taken place in candid detail then focuses you on what the government’s measures will actually do for the U.S. financial markets and economy.

Be assured, this report delivers analysis you will not find on the front page of The New York Times or Wall Street Journal. It delivers independent insights from the man who saw the bear market — and today’s bear market rally — coming when virtually no one else did.

But hurry! This free 13-page report is available for a limited-time only due to its timely content.

Please learn more about and download the free 13-page Most Important Report for 2010 now.

Warmest regards,
Alan

Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

By now most people realize that shopping online will save them money. You can save money by shopping online not only because you can save money on travel and time on queues, but also because online stores are able to offer you cheaper prices on their products than a store with a shop front (i.e. overheads) could. However, not only can you save money online by doing your shopping, there are also hundreds and thousands of websites dedicated to helping you save even more on those online purchases and here is a top 10 list of websites which will save you money.

Coupon Code Websites

Coupon code websites, also known as promotional code websites, offer you discounts, free extras and cash back deals on just about any product or service you can think of; all you have to do is search the site and click through on a coupon which catches your eye to redeem the discount. There are numerous coupon code websites out there and this means the chances of you finding a coupon for your favourite online store or much needed service are high if you know where to look.

1 Retail Me Not http://www.retailmenot.com/

Retail Me Not offers you the choice of coupons from over 40,000 different retailers, but there is also more to the site than just the actual savings. When you become a member of the Retail Me Not online community you have access to the site’s blog and discussion forums, plus you’ll receive regular emails about upcoming events and competitions, so not only can you save money but you also have the chance to pick up some great prizes. As part of the Retail Me Not online community users share their tips and advice for saving money online, plus the site is well designed and easily laid out so you don’t feel you’ve stumbled into an online scam with a lot of flashing ads and glaringly ugly headings. So if you’re wondering where to start in your search for online bargains, click these coupons and their extras.

2 Coupon Codes 4 U http://www.couponcodes4u.com/

Another very user friendly coupon code website, and one which gives you a little advice before you start using the site on how the coupons work, and things to look out for before you choose a coupon. For those new to coupon code websites Coupon Codes 4 U will remind you to check expiry dates for example, and the site has a short list of the moth’s top retailers with coupon codes available. Coupon Codes 4 U also accepts coupon submissions from its users so if you come across a coupon which doesn’t suit you but you want to share it, you can submit it to the site for someone else to make use of.

Cash Back Websites

Many comparison websites will receive a commission from retailers they link to when a user clicks through to that retailer’s site. With cash back websites, they pass on this commission to the user, sometimes in full and sometimes just a portion of it. Regardless of the percentage, starting your online shopping at a cash back site could mean getting sometimes hundreds of dollars back on a purchase you would have made directly from the retailer’s site anyway.

3 Quidco http://www.quidco.com/

Quidco is one of the cash back sites which passes on 100% of their commission from retailers to their members. Originally founded to help students save money online, Quidco charges members just £5 a year which is deducted from one of their cash backs to keep the site running. This means Quidco is completely independent so you’re not bombarded with advertising and you don’t have to worry that you’re being directed to retailers who are sponsoring the site, rather than the ones which are really best for you.

4 Manufacturer websites

Often retailers and manufacturers will offer specials and cash back deals to encourage sales. These may be online or in store, but you generally have to buy the product and then apply online by entering your receipt number to redeem your cash back. When you’re in the store you are usually caught up in the savings you are going to make when your cash back cheque comes, so it is important to remember to go to the manufacturer or retailer’s website to redeem your cash back offer – it is usually as simple as filling out an online form and waiting for the cheque to arrive in the mail.

Discount Websites

The internet is a great place to find great bargains, if you know where to look and there are entire websites dedicated to discounting the products you are looking for.

5 Kitchenware Direct http://www.kitchenwaredirect.com.au/

It can be expensive to kit out a whole kitchen, especially when you want to fill your kitchen with all the great brands your friends can’t afford. That’s why you need to shop online for your kitchenwares at a dedicated online discount store. Kitchenware Direct invites you to become a member of the site and receive notifications about special offers – sometimes the site may offer free shipping (which can normally be expensive on bulky or fragile kitchen items – or will offer site wide discounts off their prices which are already cheaper than the stores.

6 Banana Blue http://www.bananablue.com.au/

Banana Blue is an online supermarket and shopping for your groceries online is a great way to save money. The weekly shop can take a substantial bite out of your budget and if you can save money on your groceries it will make a big difference to your bottom line. By shopping online you buy only what you need and none of those impulse items, plus Banana Blue is backed by IGA Group and guarantee you 100% quality and freshness.

Comparison Websites

You don’t have to do all your shopping online to use these websites to save money. There are a number of comparison websites online which allow you to shop around for the best prices on products before you leave the house, so you know you’re getting the best deal. Comparison websites are also used to keep retailers or service providers competitive in their pricing, which means you can save even more.

7 Fuel Watch http://motormouth.com.au/pricesearch.aspx

Fuel is one thing you can’t buy online, but you can use the internet to help you find the best price out on the road. Fuel prices fluctuate according to the day of the week, the time of the day and the street that you’re on so you can save a lot of money by entering your post code into Motor Mouth and finding the cheapest fuel at that exact time. Fuel prices are updated in the morning and afternoon each day, and the site collects prices for all major cities.

8 Grocery Watch http://www.grocery-watch.com/

After the Australian Government tried and failed to launch a site in 2008 for groceries which reported the prices of items in a similar way to the fuel watch sites used around the country, in 2009 social media took over and Twitter was used to launch a working Grocery Watch website. The site offers you a free membership, with which you can make a list of the items you will be looking for, find any coupons or discount offers which are available and prints your shopping list with the location of the cheapest items on the list.

Online Auctions

We’ve all heard of eBay, but it’s not the only place online you can save by beating other shoppers to the bid. The best way to save money with online auctions is to stay across the board of all auctions, and find an auction site which works with the way you shop.

9 eBay http://www.ebay.com/

Once you register for the free membership to eBay you can view hundreds of thousands of new and used items for sale at prices far below those you would find in any store. You also don’t have to worry about buying used items if you don’t want to because there are many eBay sellers who use the site as their main income to sell their products new, still in the packet, but at reduced online auction prices. eBay also has proven conflict resolution systems in place and take the privacy of their buyers and sellers very seriously so it is a great place to start your online shopping adventures if you’re new to all this.

10 Bid Rivals http://www.bidrivals.com/au/

Bid Rivals is an online auction site with a difference, but the difference is that it is more like a traditional auction in that you can make live bids, onscreen. Bid Rivals has very cheap items in a range of categories and you actually purchase the bids, rather than pay an amount for the item. When you sign up to the site you are given one free bid and you can also buy bid packages. You can then visit live auctions where you choose to spend your bid in the hopes that no one else bids before the time runs out on that item. Because the cost of the bids is much less than the cost of the actual item you can make savings of around 60-70% if you get your bid in before the time ends, and after everyone else has spent their bids.

Article brought to you by Fred who writes for Credit Card Finder, where he helps people to compare credit cards and choose the best credit card online.

Much has been made recently about the supposed economic recovery.  A few blips in a few statistics and many believe our troubles are all over.  Of course, they have to redefine recovery as “jobless” to account for the lack of improvement on Main Street.  But the banks have money, Wall Street is chugging along, and the administration would like to get on with other agendae.

They have even set up a commission to investigate the crisis as if it were all in the past.

The truth is that Americans are still losing jobs, the Fed is still inflating, and more regulations are in the works that will prevent jobs and productivity from coming back.  We are on this trajectory for the long haul.  The claim has been made many times that this administration has only had a year to clean up the mess of the last administration.  I wish they would at least get started!  Instead of reversing course, they are maintaining Bush’s policies full speed ahead.  They are even keeping the Bush-appointee in charge of the Federal Reserve!  They are not even making token efforts at change in economic policy.  And for all the talk of transparency, we hear that some powerful senators will do all they can to block a simple audit of the powerful and secretive Federal Reserve.

We have been on a disastrous course for a long time.  The money supply has doubled in the last year, our debt is unsustainable, the value of the dollar is going to continue its drop, and those Americans who understand where we are headed feel helpless and held hostage by foolish policy makers in Washington.  When the bills finally come due and the dollar stops working we are in for some real social, economic and political chaos.  That is, unless we take some major steps now to allow for a peaceful transition in the future.  These steps are laid out in my legislation to legalize competing currencies.

First of all, no one should be compelled by law to operate in Federal Reserve notes if they prefer an alternative.  We should repeal legal tender laws and allow Americans to conduct transactions in constitutional money.  Only gold and silver can constitutionally be legal tender, not paper money.  Instead, it is illegal to conduct business using gold and silver instead of Federal Reserve notes.  Simply legalizing the Constitution should be a no-brainer to anyone who took an oath of office.  Consequently, private mints should be allowed to mint gold and silver coins.  They would be subject to fraud and counterfeit laws, of course, and people would be free to use their coins or stay with Federal Reserve notes, as they see fit.  Finally, we should abolish taxes on gold and silver, which puts precious metals at a competitive disadvantage to paper money.

The Federal Reserve is a government-sanctioned banking cartel that has held far too much power for far too long and is in the end stages of running the dollar into the ground, and our economy along with it.  The very least Congress can do, if they are not willing to abolish the Fed, and perhaps not even conduct a serious audit of it, is to allow citizens the freedom to defend themselves from being completely wiped out by their monopoly power.

Ron Paul

Brought to you by Alan’s Money Blog:
http://alansmoneyblog.com

By Elliott Wave International

Like a spy who gets a burn notice, Federal Reserve Chairman Ben Bernanke has suddenly lost his support.

Bernanke has gone from being Time magazine’s Man of the Year in 2009 to … what? A Fed chairman embroiled in a controversial reconfirmation process before U.S. Congress. Why the sudden turnaround in his fortunes?

Robert Prechter, president of the research firm Elliott Wave International, has written about the history of the Fed and its chairmen several times over the years, and his research shows that their popularity rises and falls with social mood, which is measured by the stock market. Here is a compilation of excerpts from Prechter’s monthly market letter, The Elliott Wave Theorist, from 2005-2009 about the trouble he sees brewing at the Fed.

Can the Fed Stop Deflation? Robert Prechter answers this all-important question in his Free Deflation Survival Guide. The guide gives you a 60-page ebook that will help you understand deflation and its effects on society; you’ll even learn how to survive and prosper in such an environment. Download Your Free 60-Page Deflation eBook Here.

(November 2005) The Coming Change at the Fed | Public figureheads have a way of representing eras. This is certainly true of entertainment icons and politicians. The history of Fed chairmanship implies a similar tendency for changes of the guard to coincide with changes in social mood and therefore stock prices and the economy. [The chart below] depicts our social-mood meter—the DJIA—since the Fed’s creation in 1913, marked with the reigning chairmen according to a list on the Fed’s website.

The first chairman, Hamlin, presided over a straight-up boom. As it ended, Harding took over and presided over an inflationary period that accompanied a bear market, exiting just as a new uptrend was developing. Crissinger took over at the onset of the Roaring Twenties, and Young presided over the boom, the peak and the rebound into 1930. Meyer took over just as confidence was collapsing and left the office in early 1933 at the exact bottom of the Great Depression. The next three chairmen struggled through the choppy years of the 1940s. Then Martin presided over virtually the entire advance from the early 1950s through 1969, exiting just before the recession of 1970. Burns and Miller presided over a bear market and exited as the new uptrend was developing. Volcker, after weathering an inflation crisis, presided over the explosive ’80s. Greenspan has presided over the manic ’90s and the topping process. [Ben Bernanke] will have his own era. Given the eras that have immediately preceded the coming change in leadership, the odds are that this new environment will be a bear market.

(June 2006) Economists are convinced that the Fed can “fight” inflation or deflation by manipulating interest rates. But for the most part, all the Fed does is to follow price trends. When the markets fall and the economy weakens, the price of money falls with them, so interest rates go down. When the markets rise and the economy strengthens, the price of money rises with them, so interest rates go up. The Fed’s rates fell along with markets and the economy from 2001 to 2003. They have risen along with markets and the economy since then. Regardless of the Fed’s promise to keep raising rates, you can bet that the price of money will fall right along with the markets and the economy. Pundits will say that the Fed is “fighting” deflation, but it will simply be lowering its prices in line with the others.

It is highly likely that the next eight years or so will test the nearly universally accepted theory—among bulls and bears alike—that the Fed can control anything at all. The Great Depression made it look like a gang of fools, as will the coming deflationary collapse. We have predicted unequivocally that the new Fed chairman will go down as Hoover did: the butt of all the blame, and if you are reading the newspapers you can see that it’s already started. “When Bernanke Speaks, the Markets Freak” (San Jose Mercury News, June 10, 2006); “Bernanke is being blamed for spooking Wall Street” (USA Today, June 7, 2006); “Bernanke to blame for volatility” (Globe and Mail, Canada, Jun 13, 2006). The new chairman had a brief honeymoon (which we also predicted), but it’s already over.

By the way, I heard his commencement speech at MIT last week, and in it he spoke eloquently of the value of technology and free markets. But he also opined that economists have successfully applied technology to macroeconomics. We believe that the collective unconscious herding impulse cannot be tamed, directed or managed. In our socionomic view, the Fed cannot control the mood behind the markets, but rather, the mood behind the markets controls how people judge the Fed. We’ll ultimately find out who’s right.

Can the Fed Stop Deflation? Robert Prechter answers this all-important question in his Free Deflation Survival Guide. The guide gives you a 60-page ebook that will help you understand deflation and its effects on society; you’ll even learn how to survive and prosper in such an environment. Download Your Free 60-Page Deflation eBook Here.

(December 2009) Bernanke’s greatest achievement was not the measly $1.25t. of debt that he arranged to have the Fed monetize; it was convincing the government to shift the burden of debt default from the speculators and creditors to taxpayers.

(September 2009) Thanks to the Fed Chairman and two Treasury Secretaries, profligate bankers have been cashing checks off the Fed’s and the Treasury’s accounts, and the poor savers and taxpayers who fund these institutions are unaware that their personal bank accounts are being tapped by counterfeiters and thieves.

That lack of awareness may soon change. Declining social mood is fueling the drive to expose the Fed’s secrets. [Ed. note: Bloomberg News has sued the Fed under the Freedom of Information Act; Congressmen Ron Paul, R-Texas, and Barney Frank, D-Mass., are leading a charge to audit the Fed.] Exposing the Fed’s secret deals could lead to scandal and the collapse of major money-center banks. But most important to our monetary outlook, it will serve to curb the Fed’s reflation efforts. As I have written many times, deflation will win. Social mood is impulsive and cannot be stopped. The downtrend will claim its victims by whatever measures it must take to do so.

(August 2009) On July 26, in a speech in Kansas City, MO, Fed Chairman Ben Bernanke declared, “I was not going to be the Federal Reserve chairman who presided over the second Great Depression.” (WSJ, 7/27) We think this implication of a fait accompli is premature. Clearly, the Fed Chairman and the majority of economists are of the opinion that the worst of the financial crisis is past and that the Fed’s unprecedented lending has averted deflation and depression. But wave 3 down in the stock market will dispel these illusions. Years ago, we suggested that Chairman Greenspan quit if he wanted to keep his lofty reputation. He didn’t do it. Now Chairman Bernanke should consider this option.

So will Bernanke serve a second term as Fed chairman? The January 2010 Elliott Wave Financial Forecast says, “Social mood is still too elevated to deny Bernanke reappointment as head of the Fed. … But rising political tension confirms that his next term will be far more stressful than his first.”

Can the Fed Stop Deflation? Robert Prechter answers this all-important question in his Free Deflation Survival Guide. The guide gives you a 60-page ebook that will help you understand deflation and its effects on society; you’ll even learn how to survive and prosper in such an environment. Download Your Free 60-Page Deflation eBook Here.

Hi there. Guess what. Another forex robot has hit the market with stupendous marketing force. This latest forex claim to fame goes by the name of USDBOT.  I blogged in more detail about it over at my forex blog so those of you who are into forex like me are invited to check the link below if you’re curious to know about USDBOT:

http://alansforexblog.com/2010/01/26/usdbot-is-now-live/

Like I mention on the forex blog post you can also visit the Forex Nirvana forum and chat with other forex traders regarding this new forex robot (and other forex related topics of course!)

http://www.forexnirvana.com/f19/usdbot-1334/

Good luck!

Cheers,

Alan

A while back I blogged about the Ally high interest savings account offered by a Canadian bank called ResMor Trust. In that post I said the following:

Although I definitely think their high interest savings account represents a great offering and without a doubt I can recommend them I for one will not be opening an account with them. After some careful consideration I decided to go with one of their competitor which offers a slightly better interest rate.

I take back the part about not opening an account with them because I went ahead and did exactly that. Out of all Canadian financial institutions Ally offers the second highest interest rate. The top rate is offered by another bank called Peoples Trust (2.10% as compared to Ally’s 2.0%) but after some contemplation I’ve decided that the extra 0.10% offered by Peoples Trust is not worth the inconvenience of not having an online banking feature. What can I say, I guess I’m “spoiled” perhaps, but I believe that even a rudimentary online banking system is a must these days. I’m not asking for much, just give me a simple page where I can see my account balance, interest earned, and the ability to move funds back and forth from the savings account to a linked checking account I’ll be happy. Peoples Trust already has a website so I wonder is it really that expensive to add and maintain a online backing system?

Anyways, back to Ally. I found the account opening procedure to be really easy. Everything was done online. I just gave them a few vital pieces of information and that was it. Next I mailed them a check (made payable to myself) and once they receive it my account should be funded. I’m not sure if they’ll automatically link my Ally savings account to the checking account upon depositing the check, but even if they do not it should not be a big deal because I can manually link bank accounts to the savings account via their online banking system.

I’m gonna keep you folks updated on how my experience with this bank goes.

By the way the Ally website is available at: http://www.ally.ca

Wishing you all the best!

Cheers,
Alan
http://alansmoneyblog.com