Posted on 11/05/2009 5:51:56 AM PST by blam
Prechter: The 2008 Crash Was Merely A Warmup
Joe Weisenthal
Nov. 5, 2009, 6:19 AM
Elliot Wave analyst Bob Prechter explained to Maria Bartiromo why this market rally is kaput. The internals are ugly, momentum is breaking down, valuations are too high, and everyone's too bullish. He ominously described the 2008 crash as a warmup, and he likes Treasuries.
[snip]
(click on the site to see the video)
(Excerpt) Read more at businessinsider.com ...
>> he likes Treasuries.
I liked treasuries a lot more when 30 day T-bills were yielding five percent.
I guess we’re doomed. Wonder which Hedge Fund he’s betting on.
Being a doom and gloomer has become conventional wisdom. If you want once again to don the contrarian mantle, become a boomy boomer!
I remember when Prechter was a raging bull (early 1980s). Big fan of the Elliot Wave theory. Its utility got washed out by 1989 because it was followed by too many traders.
The Fed has left us with two choices, continue the carry trade and inflationary bubble or pop it and accept the consequences. They are too gutless (as of yesterday) to even talk about tempering it. So they will leave rates alone while that money sloshes around in Asia and Australia on speculative investments including real estate. The popping of those bubbles, which is inevitable, will wash back here just like last fall with credit seizure, bank failures, etc. Then we will have even more bailouts by spineless idiots like my congressman Frank Wolf.
Is that like Yogi's, "Nobody goes there anymore. It's too crowded."?
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