Thursday, 25 February 2010
Bear Market Armageddon: Why Prechter Might Be Right This Time
In late February last year, Robert Prechter of Elliott Wave International said "cover your shorts" and predicted a sharp rally that would take the S&P into the 1000 to 1100 range. That prediction came to pass. Prechter then urged investors to "step aside" from long positions, and speculators should "start looking at the short side."
With Prechter firmly back in familiar bearish territory, he joined Aaron and Henry again, armed with scary charts that forecast an imminent "grand, super cycle top" and collapse, mirroring the decline after the 1929 crash. A firm believer in deflation on the horizon, Prechter sees commodity prices falling this year into next.
Prechter admits he hasn't always been right. "The disinflationary period lasted longer than I thought," he confesses. But, this time it's different, he promises.