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A Market Forecast That Says ‘Take Cover’

Mr. Prechter is convinced that we have entered a market decline of staggering proportions — perhaps the biggest of the last 300 years. In a series of phone conversations and e-mail exchanges last week, he said that no other forecaster was likely to accept his reasoning, which is based on his version of the Elliott Wave theory — a technical approach to market analysis that he embraces with evangelical fervor. Originating in the writings of Ralph Nelson Elliott, an obscure accountant who found repetitive patterns, or “fractals,” in the stock market of the 1930s and ’40s, the theory suggests that an epic downswing is under way, Mr. Prechter said. But he argued that even skeptical investors should take his advice seriously. “I’m saying: ‘Winter is coming. Buy a coat,’ ” he said. “Other people are advising people to stay naked. If I’m wrong, you’re not hurt. If they’re wrong, you’re dead. It’s pretty benign advice to opt for safety for a while.”

2 Comments in Response to

Comment by Die Daily
Entered on:

Sharon, you might like ZeroHedge. They don't miss a trick, and the comments are as or more enlightening than the stories.

Comment by Sharon Jarvis
Entered on:

Thanks for the info and link. This is important news, but it's not yet appearing on the financial sites I read.  Maybe that's because the "experts" are finally saying what the rest of us already know, and it contradicts the mainstream media.  When financial guys say "head for the mountains with a gun and cans of soup," you know it's only going to get worse.  Good thing I'm already in the mountains with guns.

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