My friend Aaron Task at Tech Ticker interviewed Bob Prechter of Elliott Wave International yesterday.
We are not Elliott Wavers at our firm. We are always nervous that pattern recognition can get a little subjective at times. But it is interesting that from our trend analysis work we reach some similar conclusions to Prechter about the present secular cycle and the price risk at this point in risk assets around the world. I wish I could feel as confident as Prechter seems to be in saying how far the next correction will fall. Certainty would make this work so much easier.
That said, Prechter's comments are well reasoned and I agree in general with his big picture premise. I think it fair to say that only fools and the reckless would be blindly piled into risk assets here. Or sadly, retail investors and their advisors who don't know any better perhaps. And then there are all those pension funds with pre-historic investment plans that are long always…ouch.
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