Robert Prechter writes an investment newsletter called the Elliot Wave Theory, or some such title. His detractors never tire deriding him for belonging to a musical rock band in his youth. However, what they fail to mention is his score of successful predictions for this century. They have almost been 100% correct.
What Mr. Prechter told Bloomberg, was that he thought the S&P 500 had reached its' peak in September, and would be below the 676 low it reached in March of this year. How soon this will happen, Mr. Prechter did not seem to predict for Bloomberg.
Greorge Soros , as many may know, is a self-made billionaire who made his billions speculating in financial markets. The French have never forgiven him for speculating against their national currency the Franc, before it was transformed into the Euro. Even today, they still wish he would drop dead.
Essentially, Mr. Soros told Bloomberg that the US banking system is bankrupt, and will hinder world economic recovery. In Guido's view, this sounds just a little bit optimistic. Without a solvent financial system and with a fantastic amount of debt, it is inevitable America will be going one way. Into the depths of economic hell. The only question is when.
But Mr. Soros has always been an optimist. Back in August or September 2008, he bet on Lehman Brothers not going bankrupt and bought into the company. Supposedly he lost some money ; how much nobody really knows . However, it is certain some of the French enjoyed this, and had their own schadenfreude to console them in their stock market losses during October.
As for Noriel Roubini, as Guido had said months before - he talks, and talks, and talks. As one self-made financial billionaire told Guido privately < no it's not Mr. Soros > - " I didn't know anybody listened to him. He's been in the S&P 500 for three years." . This time Mr. R's latest prediction is that he thought the US stock markets had gone "too high" and may go down < I like the way he equivocates his statements. > . Last month Noriel thought the US economy was recovering. Then that same day, he seemed to deny he said any such thing and still thought the economy had problems.
Your guess is as good as mine what he will say tomorrow.
For where Guido thinks stockmarkets are going, you can read on this website the Sept 3 article "Tale of the Bull - aka, Bovine Scatology", the Sept 13 article "When will the Opera Lady Sing", and the Sept 15 article "What Price Glory - or, Buy While It Lasts" .
"Well if you talk and talk enough, sooner or later you're going to be right 50% of the time." - Marc Fabor laughing about himself in a Bloomberg interview.
< This article is for information purposes only. It is not a recommendation or otherwise investment advice. Please read the disclosure at the bottom of the page. >
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