Despite this outlook, keep in mind what The Elliott Wave Theorist said last month: “Even though the market is about to begin its greatest decline ever, the era of hope is not quite finished.”
For as long as another year and a half, there will be rallies, fixes, hopes and reasons to believe in recovery.
Our name for this phase of a bear market is the Slope of Hope. This portion of the decline lasts until the center of the wave, where investors stop estimating upside potential and start being concerned with downside potential.
Economists in the aggregate will probably not recognize that a depression is in force until 2012 or perhaps beyond. That’s the year the 7.5-year cycle is due to roll over (see April 2010 issue). Stock prices should be much lower by then, but optimism will still dominate, and it will show up in the form of big rallies and repeated calls of a bottom.
MyView
This is what Robert Prechter. Many have called him "crying wolf". He has been calling berish since 2000. Even a broken clock is correct twice a day. I think he is going to be very very famoust for his latest call.
This is because he nailed it in the Eliotte Wave, Cycle, Technical and also Fundamental, which forms the Supercycle.
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