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Prechter's 'Dow 1000' Prediction: Nonsensical by: Logical Thought July 11, 2010 Although I'm quite bearish about the next three to five years, even I think that Prechter's Dow 1000 forecast is nonsensical. The "nightmare scenario" (which I DON'T think will happen) would be if we returned to the worst four consecutive operating earnings quarters of the current recession (Q4 2008 through Q3 2009), in which case the S&P 500 would earn around $40. If we then put an 8x multiple on that (there's no way it's going to 5x in a ZIRP environment, and if we had enough inflation to...

Prechter: Dow Could Plunge to 1,000 as US Sinks Into Deflationary Depression Tuesday, July 6, 2010 03:38 PM Longtime technical analyst Robert Prechter said on Tuesday he expects that stocks will plunge as the U.S. economy sinks into a deflationary Depression. The Dow Jones industrial average stock index could fall to between about 1,000 and 3,000 points during the next five to seven years, he said in a telephone interview. The Dow was trading at 9,700 in late Tuesday afternoon trading. "It is very clear there is substantial stock market risk," said Prechter, who urges investors to put their money...

A Market Forecast That Says ‘Take Cover’ By JEFF SOMMER Published: July 2, 2010 WITH the stock market lurching again, plenty of investors are nervous, and some are downright bearish. Then there’s Robert Prechter, the market forecaster and social theorist, who is in another league entirely. Tami Chappell, The New York Times. If Robert Prechter is right, one market analyst said, “we’ve basically got to go to the mountains with a gun and some soup cans.” Mr. Prechter is convinced that we have entered a market decline of staggering proportions — perhaps the biggest of the last 300 years. In...

A Market Forecast That Says ‘Take Cover’ WITH the stock market lurching again, plenty of investors are nervous, and some are downright bearish. Then there’s Robert Prechter, the market forecaster and social theorist, who is in another league entirely. Prechter is convinced that we have entered a market decline of staggering proportions — perhaps the biggest of the last 300 years. ...... Originating in the writings of Ralph Nelson Elliott, an obscure accountant who found repetitive patterns, or “fractals,” in the stock market of the 1930s and ’40s, the theory suggests that an epic downswing is under way, Mr. Prechter...

And Now Bob Prechter Is Bullish On The Euro Joe Weisenthal Jun. 10, 2010, 4:55 PM Pay attention folks. This is gathering steam. The ranks of the euro bulls is gaining names. This morning it was Jim Rogers, and now Bob Prechter is saying on CNBC that the dollar's run is over. And to his credit, Prechter has DEFINITELY been a dollar bull of late. In fact he's generally been a dollar perma-bull over time. In addition to the argument that the selloff is overdone, Prechter also cited something about Elliot Waves (which is his thing). Expect to see more...

The price of gold could drop 40 percent from its all-time high because of bearish technical momentum and deflation amid a European debt crisis, said Elliott Wave International President Robert Prechter on Monday. Prechter said at the Reuters Investment Outlook Summit in New York that recent readings of gold market psychology showed a 98 percent bullishness in the metal, the highest ever recorded for any physical commodity. He said, however, that technical momentum was stalling for gold as the rate of increase had peaked in 2006, and that each subsequent rally since then has risen at a slower rate. "That...

STANDARD VIEW 1. Recession causes businessmen to be cautious. 2. Talented leaders make the population happy. 3. A rising stock market makes people increasingly optimistic. 4. Scandals make people outraged. 5. War makes people angry. 6. Happy music makes people smile. 7. Nuclear bomb testing makes people nervous. SOCIONOMIC VIEW 1. Cautious businessmen cause recession. 2. A happy population makes leaders appear talented. 3. Increasingly optimistic people make the stock market rise. 4. Outraged people seek out scandals. 5. Fearful and angry people make war. 6. People who want to smile choose happy music. 7. Nervous people test nuclear bombs....

The science of future prediction Posted: July 28, 20031:00 a.m. Eastern © 2003 WorldNetDaily.com Following the stock market can be a real bear. There isn't a single person, signal or system I know that has not been spectacularly wrong at one time or another. Robert Prechter Jr. knows this, having first made his name with a wildly optimistic call in 1982 that turned out to be on the conservative side, he missed out on the 1996-1999 bull bubble but redeemed himself with a harshly negative prediction in 2000. He is the leading champion of Elliott Waves, which are an esoteric, but...