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Gold and the shares will be cheaper |
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After Friday's weak U.S. keeping the dance floor, we turn to the latest projections by Robert Prechtera known promoter of the Elliott wave theory. Last week he gave an interview to American television, CNBC, which has consistently kept a bear's scenario.
Why do we recall his predictions? The answer is simple - over the last several months Prechter very well analyzed the U.S. market and its recommendations certainly helped investors earn considerable money . Similarly, good luck was in the eighties of last century, when at the very bottom of the forecast at the beginning of the decade long bull market (it lasted almost 18 years), and in the meantime warned of meltdown in 1987.
Then clear the form and left him only recently seen the start again to gain the status of a guru. First, from the tip of 2007 years has consistently advocated the wagering declines, then at the end of February and March 2009 Prechter encouraged to take a position after a long side of the market, based on the extreme pessimism of investors and financial advisers - only 2% of them had bull attitude of a hole in one on March 6, 2009, when the S & P 500 has fallen below 667 points. Moreover, technical analysis also pointed to the extreme sold out and a chance for reflection. Its scale was enormous and surprising power and dynamics for many people (not including me), but not for Prechtera, who predicted that the S & P 500 will reach 1000-1100 points, on the occasion of giving a false long-term buy signals. Prechter in the current trace the similarities to the peaks of 2000 and 2007, which is great optimism of traders and investment advisers - we find three more bulls than bears. It should be noted that share prices are at extremely high levels, even if you take a look at simple indicators such as projected price / earnings. In addition, the market in recent months clearly lost momentum, and events from the late fall only slightly improved their quotes. To sum up these factors, Prechter believes that it has probably already begun the next phase of the bear market and what might shock some, in his opinion, it is possible that eventually we will find below the previous holes. It's really brave and interesting opinion that actually proves to be true? Another surprise is claim Prechtera that, contrary to widespread positive sentiment towards gold (remember receiving customer Mint gold fork lift truck) with excellent anti-inflation protection, the price of bullion, first rapidly cheapening, up to 40% from recent peaks, flying down with the prices of raw materials and much interesting alternative is, according to him ... the U.S. dollar. Green actually regained vigor and confirms the last bull attitude Prechtera presented by him for several months. It is worth recalling also the opinion of George Soros, who at the recent economic summit in Davos, also warned against speculative bubble, which inflated the gold. Is there anything in the optimistic vision Prechtera? For sure those who had not managed "cheat" in the recent wave of growth will receive a promotional opportunity to buy shares. The problem is that Prechter believes that the U.S. economy will remain weak for a long time and hence the expectation of gains from investments We can take a long time. Precht verify whether the visions are, we shall soon be a first important test for our market will start a little over 2300 points on the WIG20. Until this level is not broken, so long Precht forecasts can be treated with a slight pinch of salt.
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World Economy 
