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BRACING FOR A MARKET APOCALYPSEDOOMSDAY IS UPON US. So says market prognosticator Robert Prechter, who became a Wall Street celebrity by accurately forecasting the 1982-87 bull market. In his monthly newsletter, The Elliott Wave Theorist, he predicts that the market will plummet more than 50% over the next two years, followed by a 1930s-style depression. Prechter's star has dimmed somewhat lately because he has been downbeat during the 1990s market advance. But, says Jim Schmidt, editor of Timer Digest, which tracks financial newsletters, he's ''still well-respected as a technician and a professional.'' Prechter gets attention in investing circles, even if many on Wall Street dismiss his jeremiad as extreme. The $233-per-year Prechter newsletter is based on the ideas of Ralph Elliott (1871-1948), who constructed an elaborate mathematical model to divine the long-term ebb and flow of stock prices. Prechter's warning goes far beyond the minor postelection gyrations some market-watchers expect. According to his calculations, investor euphoria has lifted the market to unsustainably giddy heights--and the coming crash will take the economy with it. His recommendation: ''Invest in the shortest-term interest-bearing instruments.''
EDITED BY LARRY LIGHT
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Updated June 14, 1997 by bwwebmaster
Copyright 1996, by The McGraw-Hill Companies Inc. All rights reserved.
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