Prechter calls the market bottom

My guest this week is Robert Prechter and I have included a link to a recent report in the educational section of my website for more details on today’s educational segment and several free reports.

Bob is bearish on the world markets to put it mildly, but has not always been a bear. Bob reached prominence in 1979 when he left Merrill Lynch and published the first subscription issue of the Elliott Wave Theorist. The 1970s had been very bullish years in the gold market but mostly bearish for stocks, yet his Elliott wave analysis called for a long-term reversal lower in gold (February 1980) and a long-term "super bull market underway" in stocks (October 1982).

Because these forecasts proved mostly correct—especially for the stock indexes—Prechter's following grew. His visibility increased further after he won the U.S. Trading Championship in 1984, with a then-record 444% return in a monitored options trading account. He was profiled in many financial and business publications and named "Guru of the Decade" by the Financial News Network (now CNBC) for the 1980s.

Prechter has been forecasting a large-scale bear market, as explained in his book Conquer the Crash. While I am not a practitioner of Elliott’s Wave Theory, it is a popular technique used by many technical analysts. What I do believe is that markets work in cycles, and Bob is clearly an expert in understanding how cycles impact our day-to-day lives as well as financial markets. 

Bob expects stocks and commodities are in a bear-market rally and continues to suggest investors be short and look for markets to ultimately bottom in 2016.

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