Testimonial: EWI’s December Financial Forecast ‘Absolutely The Best’

Dear Steve (Hochberg) and Pete (Kendall),

I have been a subscriber to your service for quite some time, and have always found it informative. Your analysis of the markets, interest rate movements, etc. are much appreciated. However, I have to tell you that your December 2007 issue was absolutely the best you have written in a long time.

The December issue of the “pictures of a bear market” and your work on the dollar sentiment clarified emphatically what I have been telling my clients for some time. But the best, in my opinion, was the little chart and associated write up on the bond market. Showing how 1.) the credit spread in High Yield U.S. Corp bonds over Investment Grade U.S. Corporate bonds is greater now than in 2005, at the height of the housing mania, and 2.) how ineffective the Fed’s much ballyhooed rate cuts are was just inspiring. Now that people have seen what a little taste of the credit crunch is like (late summer ’07 to now), and knowing that “somebody” knew something in 2005 to keep the spread high to compensate them for risk, this chart is just awesome in its implications.

No, the market will not move down in a straight line, but smart investors better “batten down the hatches” as there are rough seas ahead … much worse than we’ve seen so far.

I am a market technician and know how much work it takes to produce your service. I also appreciate how you are willing to say what you believe is going to happen to give your readers advance warnings unlike the worthless talking heads on TV. You are so correct … having the media declare a “10% correction” recently was useless to anybody who believed them. Where was the media in October at Dow 14,200? They were feeding at the bullish hog trough as much as possible. That pretty much displays my disgust for these people who will forever put “lipstick on this pig” as the classic commercial went.

Anyway, keep up the fine work.

Richard L., CFP, CPA
Dayton, Ohio
Los Angeles, Ca

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