Holy **** ......
'Guru' predicts Dow could fall to 1000 ANDREW CLARK
July 9, 2010
FEELING too cheerful? In danger of irrational exuberance? Meet another finance man with a plan to depress you. Veteran market forecaster Robert Prechter is predicting a staggering stock market slide.
Prechter, a cult figure in the finance world whose dramatic predictions have sometimes come true, reckons the Dow Jones Industrial Average is set to fall from about 10,000 points to between 1000 and 3000 points, a collapse of up to 90 per cent in the value of stocks, over the next five to seven years.
''It is very clear there is substantial stock market risk,'' he said.
Prechter, 61, is a former Merrill Lynch analyst who is an aficionado of a theory called the Elliott wave principle, essentially a belief that investor behaviour can be forecast according to measurable swings and patterns of psychology. Prechter, a former president of the Market Technicians Association, was named ''guru of the decade'' in 1989 for his prediction of the bull market of the early 1980s and the stockmarket crash of 1987. He runs a consultancy called Elliott Wave International.
Prechter told The New York Times he expected a crash akin to the collapse of the South Sea Bubble of 1720: ''If I'm right, it will be such a shock that people will be telling their grandkids many years from now 'don't touch stocks'.''
Prechter also believes US house prices, down 40 per cent in some states, are just halfway through their fall. He thinks soon the US dollar will be worth no more than a Swiss franc and that Europe is in for a spell of deflation.
http://www.smh.com.au/business/guru-...708-102eb.html
'Guru' predicts Dow could fall to 1000
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09-07-2010, 07:54 PMwinner69'Guru' predicts Dow could fall to 1000
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09-07-2010, 08:16 PMJBmurc
And here's me thinking the markets have no backbone companies like CFE trade round cash backing no value for assets no future value like so many resource backed shares that have real value unlike say the tech shares etc so say the DOW crashes will the likes of CFE trade for less than cash?? ---- so many ASX shares at bargain prices
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10-07-2010, 12:15 AMpeatas a a subscriber to his publications I think I should correct the statement quotedQuote:
Originally Posted by winner69
he is actually medium term bullish the USD (though its correcting in an ABC at the moment after a 5 wave rally)
he correctly predicted its rise some time ago and sees this current fall as a temporary thing as the Euro is correcting from its massive plummet.
from his June Theorist I quote