Bullish a Year Ago, Robert Prechter Now Sees "the Biggest Bubble in History"

[Joanne98]

In February 2009, Robert Prechter of Elliott Wave International predicted a market rally that would be "sharp and scary for anyone who is short."

In recent months, Prechter returned to more familiar territory, declaring here in November the market was in a "topping area."

A few weeks ago, the veteran market watcher told the Society of Technical Analysts in London that a "grand, super-cycle top" is at hand, The WSJ reported.

"What has happened is a complete change in psychology from extreme negativity to extreme optimism" heading into the market's recent top in January, Prechter says.

http://finance.yahoo.com/tech-ticker/bullish-a-year-ago-robert-prechter-now-sees-%22the-biggest-bubble-in-history%22-429931.html?tickers=%5EDJI,%5EGSPC,TBT,UUP,SHY,JNK,TLT&sec=topStories&pos=9&asset=&ccode=

[postulater]

1. Is that good?

[SpiralHawk]

2. Or is that bad?

Methinks so...

"Nobody should be taking risk right now. This is a time to be safe," he says.

[sendero]

8. Extreme optimism..

... is almost always the prelude to a major crash, especially when there is absolutely no fundamental basis for the optimism.

[Turbineguy]

3. I get my market advice from

Nostradamus.

[Ikonoklast]

6. You bought History Channel futures?

I'm shorting that Hitler guy; I think things will go badly for him.

[Turbineguy]

7. Good trade!

I predict you'll make some fast money.

[dmallind]

4. Well I would place more trust in someone like this who at least changes their forecast

Than in continuous doomer heroes like Roubini (who is at least genuinely intelligent) and Kunstler (who is a moron) who jump out of the woodwork and claim success when things happen to go in the crapper for a bit. If you forecast booms (and are right-anyone who sold short in Feb 09 was an idiot) then busts I at least start caring about what you are basing your opinion on and how you draw your conclusions.

And yes I consider constant predictors of good news all the time every time to be just as bad. They are however much rarer. Doom is sexier and easier to sell.

[On the Road]

5. I Agree

It is difficult to be a contrarian, and calling that rally in February last year took a lot of foresight.

I too can't see the stock marketing rallying from these levels. It could go sideways for a years or two, but a decline is likely. As they say, "sell in May and walk away."

[sendero]

9. Kunstler..

.. is not a moron, he is merely sufficiently ahead of his time to appear so.

[dmallind]

10. Yeah - four years and counting on his "Dow will hit 4K THIS year" predictions. Snicker. NT

[sendero]

11. A perfect..

.... example.

[dmallind]

12. of...?

[pscot]

13. If Prechter called last yar's move

that may have been the first time in his career that he got it right.

[ixion]

14. Another bubble, any bubble will bring us down

And by 'bubble', I mean an artificially-inflated vertical market.

We need to stop allowing the F.I.R.E. vertical to create bubbles. They may make millions for the banksters, but they're financial WMDs where the rest of us are concerned.

If you are not producing a viable product, or providing a demonstrably useful service (F.I.R.E. services being largely unuseful), then you should not be allowed the privilege of incorporation.

That's not socialism. It's mature capitalism... or perhaps old-fashioned capitalism.

I consider myself to be an old-fashioned capitalist. That is: I make a quality product for a fair price. Call me an idealist, I guess.