Hat tip: Brasscheck
In 2000, Bob Prechter published a book called “Conquering the Crash” in which he accurately predicted the current financial markets meltdown right down to the bank failures and futile “bailout” actions on the part of the Fed.
This past October, Prechter was asked if we could expect to see a “bottom” any time soon. In other words, the end of the declines and the beginning of the rebuilding of share values.
He quite confidently said the equivalent of “no way!”
That was over four months ago and so far he’s right on the money.
Prechter is a highly respected analyst on Wall Street as demonstrated by his frequent appearances on Bloomberg TV.
Unfortunately, his message is not getting to the “average” investor who is being told to “hold steady.”
Holding steady is a period of dramatic deflation is a great formula for going broke.
From the publisher…
Last night an economist on NPR in response to the DOW closing in the 6800’s, predicted that “some banks were going to be winners and some would be losers.” My family and I burst into laughter, and one of us said, “it was like a meteorologist saying some days would be sunny and some would be cloudy.” In the end, we decided economists were just fortune tellers with suits…looking into their crystal ticker tapes.
That being said, I’m not an economist or a fortune teller…I don’t even play one on TV.
Personally, in light of “Helicopter Ben” Bernanke, I’ve always feared inflation over the next few years, but thought I’d pass along the other view.
See related story, “Glenn Beck Speaks Out on “An Inconveneint Debt”