Robert Prechter to Investors: Play It Safe, Rally Is Over

Robert Prechter on the bear rally to Yahoo's Tech Ticker:

He's predicting another crash in 2010 that will bring stocks below this year's low. His word to the wise, "be patient, don't rush it" keep your money in cash and cash equivalents for now and wait out this bear market.

He says:

Be very careful. Don't lose the money you have saved in the markets that are likely to come down in 2010 a long way.

Comments

[drewriders:]

Does anyone really listen to this guy? Has he even been a bull? I would bet him money the market doesn't go below 7000 next year.

Nov 10 07:17 AM

[Dr Jan:]

Good question, Drewriders.

Dear All Things Forex,

Have you checked on the accuracy of ALL his predictions simce1987? If not, why are you telling us what he said.
Being right once or twice is easy. Even a stopped clock is right twice a day. It's a total waste of time plus we will lose all our money to read anything from someone that--say--predicted depression 19 times and was right twice.

Nov 10 08:46 AM

[Graham and ...:]

We are very much in Prechter's camp. For "fundamental" reasons, not his "record."

Nov 10 09:01 AM

[The Economi...:]

I wonder how many of these posters have multiple best selling books on the economy.

I bet zero.

So zip it.

Nov 10 02:53 PM

[theLonelyTr...:]

LMAO...

"I would bet him money the market doesn't go below 7000 next year."

What a gutless call.


On Nov 10 07:17 AM drewriders wrote:

> Does anyone really listen to this guy? Has he even been a bull? I
> would bet him money the market doesn't go below 7000 next year.

Nov 10 09:23 PM

[Faisal Humayun:]

I think its difficult to time the markets...But I can also say with a lot of conviction that the risk of downside from these levels is higher then the potential for upside...

So after a more then 50% rally on the Dow we are bound to see some correction...However, I don't buy the argument that the markets will touch its March 2009 lows again...

I am sure even if the markets dip 15-20% there will be some policy action to again support markets...So as long as the Fed is committed to support all asset prices (by money printing) we can be sure that there is no major crash coming....

Nov 10 11:44 PM

[wallstreete...:]

He was a bull before at the depths of the 70's/80's recession. Stocks came back strong after this call. He was correct on a call just before the 1987 market crash. He correctly called the December 2007 bear market in October 2007. He called the bear market rally this year a couple weeks before the bottom in March 2009 and said the Dow would rise to about 10,000-11,000. Seems like a pretty good record to me.

Nov 11 11:58 AM

[Nadeem Walayat:]

On Nov 10 02:53 PM The EconomicJoker wrote:

> I wonder how many of these posters have multiple best selling books
> on the economy.
>
> I bet zero.
>
> So zip it.

Because successful traders are busy trading rather taking a year or two to write each book.

Multiple best selling books ?

So when does the trading take place ?

Nov 12 01:50 AM

[Nadeem Walayat:]

In March Prechter says the bear market would end by early 2011 Now 2014-2016.

Nov 12 01:52 AM

[Nadeem Walayat:]

On Nov 11 11:58 AM wallstreeter2001 wrote:

> He was a bull before at the depths of the 70's/80's recession. Stocks
> came back strong after this call. He was correct on a call just before
> the 1987 market crash. He correctly called the December 2007 bear
> market in October 2007. He called the bear market rally this year
> a couple weeks before the bottom in March 2009 and said the Dow would
> rise to about 10,000-11,000. Seems like a pretty good record to me.


Heres what he actually said rather than what people think he said on 25th feb 09

Even though the S&P is at its lowest level in 12 years this is not a market call either we will need to finish the wave structure on the downside or get a rally to decide to be bearish again. It is time to take some money off the table when the market is that friendly with you. We are just sitting back and watching and probably still some downside to go and certainly not the end of the bear market by any means.

So Bob this is not necessarily a bullish call this is more whether you should be greedy in your profit taking ?

Yeah, That is exactly right it is definitely NOT a bullish call we are certainly not buying any stocks they are still extremely overvalued by every measure by dividends, earnings, book value, you name it. The bear market has a long way to go ass you know from the forecasts's I am making there are at least 2 more years to go. We are thinking there may be a short term low somewhere here in the first quarter, but there is still plenty of risk and there is plenty of risk of buying stocks, investors should stay safe.

Nov 12 01:55 AM

[BigBull:]

Nadeem,
Get your facts right. In Feb 2009, Prechter did say that there is going to be a sharp and scary rally. Check this out:

www.huffingtonpost.com...

Nov 13 12:42 AM