Helping you Survive Deflation

http://www.marketwrapwithmoe.com/
Guest: Robert Prechter Jr., Founder and CEO, Elliot Wave International
- Are we printing too many dollars right now?
- Is now a good time to invest in bonds

Category:

News & Politics

Tags:

• financial
• advisor
• asset
• management
• stock
• market
• planning
• investing
• retirement
• money
• gold

[BringBackCapitalism]

If you're in real estate, it's easy to believe we're in a Deflationary Depression. Even non-cyclical market properties with 100% occupancy are trading at 50% off: Why? Credit Collapse and rents are dropping everywhere and for all property types except MHPs. There's some truth to what you're saying SergLLLL, but I believe Prechter Has Nailed it this time. We are back in a Bear Market and it's about to blow-up in the faces of the Bulls.

[ednan9]

SergLLLL is a funny guy - he/she think that analyst are fotune tellers and out there to make money for him/her...

[ohio1998]

@BringBackCapitalism , nice call. I think the market is going back down also. But, I'm sure they'll find a way to try to increase spending.

[ISeeThemNow]

I agree my man, I went cash also in sept 2009. It comes down to: I'd rather lose a little bit of upside in what I consider to be a long term decline. The way I see it, the magic investment formula of the past 6 decades (where if you don't time correctly, its OK because investments go up longterm), is now going to be true but in reverse. Decline in general except during certain brief upward corrections, that being so until all deflationary bouts are worked through the system and cleared.

[ItsMisterMike]

Yes, he was certainly off on that call. I did, however, go into cash when he made it, and I'm glad I did. All the rise that came since that call is now gone, and we have further to fall. I bet Soros is better at timing the market. I still admire Prechter for going against the herd and sticking to it for months, even when he looked wrong. I say Obama's policies are a train wreck, and we're going to get a lot worse. Nothing happening to make the economy move up. Just higher taxes, fear, and debt.

[ISeeThemNow]

I listen to Prechter a lot because he makes a lot of sense and gets a lot right. However, he did predict a downturn since aug-sept 2009 which didnt pan out. Honestly, I think everyone who understands economics well is stunned at how long this money printing fraud can work without people clueing in. Thats why all the guys like Marc Faber, Jim Rogers, Warren Buffet...etc openly admit to being terrible traders (market timers) and instead go for long term.

[ISeeThemNow]

I second that Orangedac. I think the PPT may be going beyond their role of preventing crashes and stabilizing, and actually re-inflating with the support of the federal reserve money laundering. They actually did the same thing in oct 1929 via JP Morgan. At the time they tried to re-inflate with 250 million (massive amount for the time), today we are using multi trillion dollars.

[ISeeThemNow]

I agree with your view here High5Flyer. We have several massive deflationary bouts to clear out (commercial real estate, prime mortgage, altA/OptionArm mortgage resets, worldwide derivatives ponzi scheme liabilities, SS liabilites, medicare liabilities.) In each deflationary step the federal reserve will inflate the money supply (such as the Fannie Mae dec 24 blank check in preparation of the upcoming real estate resets). The hyperinflationary symptoms will appear afterward after the bottoming.

[Nuanceqwest]

ItsMisterMike

You are 100% right. Perception changes much slower than price.

There will have to be a full grieving process:

1. denial (where we are now)

2. anger "our capitalist masters have conspired against us"

3. Bargaining "if it just rises a little, i'll take my loss"

4. Depression - well are only half way through it

5. Acceptance.........

Then we're ready to do it again yippeeee

[ItsMisterMike]

Well, the Dow is down 750 points in the last few days, the Nasdaq is down 175 points, and so on. Prechter has got it figured out. Bear in mind he has an incredibly high IQ. He is in the top .01 percent, and is a member of the Triple 9 Society, which is like MENSA, but much higher. He isn't just another talking head on TV, like Jim Cramer. You'll see as time passes that his assessments are correct, even if he did have a few bad calls 10 years ago. Read his book, it will answer your questions.

[orangedac]

I'm not sure what to think. The stock market has hardly fallen off a cliff. Its been rising since March 2009 and I cannot figure out where the money/momentum is coming from. I think Bernanke is monetizing the debt and laundering that money through the stock market to pump things up.

I'm trying to learn as fast as I can so as not to lose my savings during the coming mess. It seems the powers that be have made the monetary system so complicated that nobody can understand it.

[ItsMisterMike]

Prechter is right. His predictions on the dollar bottoming in November were correct. A month ago he was saying it was a prefect time to get out of the market, and he was correct. It has fallen off a cliff since then. Just by virtue of the fact that he's getting such staunch opposition in the comments on this page is evidence how strongly the public feels about what the market should be doing, instead of what Prechter points out is actually the case. Keep watching the Dow collapse next week.