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A deadly bearish big picture
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That’s the headline Robert Prechter gave to his just-published Elliott Wave Theorist. You can read that entire 10-page issue right now — for FREE!
Continue reading to learn more or get it now.
Headlines are usually about what happened already, but Prechter’s headline is about what happens next. It goes beyond providing information. Yes, he wants you to see what he sees — but Prechter’s purpose is to provide you with a forecast so that you’ll be prepared.
As you probably already know, I have been a paying subscriber (and also a marketing affiliate) of Robert Prechter’s Elliott Wave International (EWI) publications for some time so what happened in the stock market today was not unexpected. I have read his book “Conquer the Crash” which has advocated staying in the safest investments. I have passed on this advice to readers of this blog, and kept our SMSF investments mainly in defensive assets like cash and treasury bonds. We still own some stocks but they are mainly in defensive sectors like consumer staples, health care and utilities. I also have a few small positions in options and short ETFs that would benefit if the markets fell, even though Prechter advised against being heavily exposed to any market instruments because he said that when there is a panic in the market, trading systems may fail. His prediction came true spectacularly today. It was surreal to watch my US brokerage account this morning as position values swung about wildly. If I had to close any position in a hurry, I would probably have to do so at a terrible price in order to get my order filled. I later found out that my broker’s software platform even stopped working when the DOW did the 1000 point dive (thankfully I was asleep when it happened). Many margin traders would have their positions automatically closed out at the worst possible time.
If you’ve read any of Prechter’s books or heard him in an interview, you know that overstatement is not his style. When he says the “Big Picture” is “Deadly Bearish,” that is exactly what he means.
This issue of the Theorist shows the depth of Prechter’s recent research into what that “Big Picture” includes. The array of time cycles he explains is nothing short of amazing; each one is relevant to the how and when of what stock market prices will do from now until the year 2016.
And make no mistake, this April issue of The Elliott Wave Theorist fully recognizes the extraordinarily optimistic sentiment that now blankets the financial world. Truth is, the evidence is everywhere — you just have to know where to look. Did you know that Time magazine quotes two professors who are telling 20- and 30-year-olds to use ALL their retirement savings to buy stocks on margin?
This is exactly the type of one-sided evidence that covered the financial world back in February of 2009 — except, of course, the extreme then led to a “deadly bullish” conclusion. Yes, that was precisely the month when Bob Prechter’s Elliott Wave Theorist told subscribers to expect the stock market to turn bullish.
Once again, find out why investors turn to EWI for a different perspective. It’s better to be with it than without. I am happy to see that many of my readers have already signed for Club EWI (free membership) and a few have signed up for the paid publications like The Elliott Theorist. I hope all of you have taken action to protect your investments and to prepare for the years ahead.
Get your FREE copy of Prechter’s latest research — Download the April Theorist now.
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[...] on a detailed comparison of the unfolding Great Recession with the 1930s Depression. Check out A deadly bearish big picture for a summary of what he said. An increasing number of people are also seeing similarities with the [...]