Simply stated, he predicts a Bear Market for years. He predicts companies will continue to shrink and consequently stocks will continue to fall.
Today the DOW lost 119 and the S&P lost almost 18. The DOW is about to lower into the 6000 area. From this perspective the 8000's of only a few weeks ago looked good.
Reuters: Stocks bear market has years to run: Prechter
...Prechter said, the S&P index could fall by half from these levels over the long term...
"The market is still overvalued, one reason being that companies continue to lower earnings."
"It's a deflationary environment. Safe cash equivalents are still where you want to be," he said. "I am still in favor of (U.S.) T-bills," he said. "The dollar bull market has more to run. That is one reason to hold them."
4 comments:
I hate to say I agree but I think were a long way from the bottom yet. I don't think he's right about yrs. though. By next winter we'll be bottoming out down in 4,000s. A return to the early 90's just when Bill C. came in. Since then it's all been nothing but hot air. The gutting of our Industrial base, now the gutting of our service base has left America hollowed out. BV$H and his gang kept a Hollywood set propped up and used it to try and fool everyone. The housing bubble was the end of the line for us. Truth is we have nothing to fall back on. anymore do we?
I can't wrap my mind around it. I'm living in a state of denial or something. I guess I retire when I'm in my 80s.
Playing the doubter role for a moment, the analyst could be a republican wanting a failed Obama by 2010 so Republicans can gain in the house and senate.
I agree, they definitely want him to fail. If he doesn't, their whole "trickle down" thing is toast for a generation. I'm afraid the odds are against Obama though. The private economy is largely owned by Republicans who are angry and are going to be petulant about losing. I see it among people I know and even family. Here's their take on things politically. Were wealthy and we deserve to rule. Democracy sucks! It's really nothing more then legalized theft. Listen, to the GOP ( GANG of PIGS) about the Stim. it's stealing they say it all day long. What they mean is democracy is theft and we HATE it and all of those of you that voted for Obama. I had a family member just tell me and my dear wife we were no longer welcome to their home because we voted for the N word. That, he's going to raise our taxes and give it to other N words. Mind u this is family!
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