Mr. Prechter is convinced that we have entered a market decline of staggering proportions â perhaps the biggest of the last 300 years. http://www.cnbc.com/id/38088826 he said that no other forecaster was likely to accept his reasoning, which is based on his version of the Elliott Wave theory â a technical approach to market analysis that he embraces with evangelical fervor.
This is a sure sign to buy. Usually these folks show up with these socio-economic projections right before the market & economies recover in a big way. After this they go back back to their Elliott Wave magic eight-ball and start re-numbering all the peaks & troughs, reviving their projections while scrubbing the history of what they wrote in their earlier newsletters.
Sooner or later they get it right though. I'm not so sure about biggest correction in 300 hundred years, but things are going to get worse before they get better. A lot of awesome shorting opportunities have come along over the last couple of months and there will be many more to come. Ride the wave, don't fight it.
Prechter said something similar in 1987, and was "evangelically fervent" in his certainty then, too. That decline "of staggering proportions" was a drop of 36% and lasted about nine weeks. It is barely noticeable on a chart compared to the 15 year bull market that followed it. I don't know if he predicted it any other times between then and now, but I seem to remember that he kept his clients out of a lot of the bull move after the1987 low. Perhaps if he predicts often enough he'll eventually be right. Drummer