Robert Prechter on Deflation and the Greater Depression

by Delwyn Lounsbury -  THE DEFLATION GURU

Robert Prechter Jr (1949), american author and market analyst.  His financial forecasts use the Elliott Wave Principle, Fibonacci, fractal analysis and socionomics.  Socionomics is his new fascinating combination of socioloy and economics.
Robert Prechter has written several books on socionomics, a theory about human and social behavior.  Socionomics describes man as a herd animal reacting to societies general mood swings from positive to negative (a waxing and waning) and back at all degrees of scale and time.  Not the way to invest, according to Robert Prechter.  Following markets like a lemming.  Better to be a contrarian. 

Robert Prechter has an uncanny ability to be on the right side of a market move because he looks at everything in society from a socionomic point of view.  Socionomics says man is a herd animal and reacts in waxing and waning - positive and negative emotional states.  This waxing and waning also leads to ups and downs in investment markets.  Booms and depressions at degrees of scale follow these mood swings.  See also - Robert Prechter's Elliott Wave Principle book (1978).  We have articles on these subjects.  He is predicting a Greater Depression and World War three.

Robert Prechter attended Yale University on a full scholarship and graduated in 1971 with a degree in psychology.  He began his career as a Technical Market Specialist with the Merrill Lynch Market Analysis Department in New York.

In 1978, Robert Prechter and A. J. Frost, C.F.A., together wrote the “ELLIOTT WAVE PRINCIPLE - KEY TO MARKET BEHAVIOR.”

In 1984 Mr. Prechter set an all time record in the United States Trading Championship by returning 444.4% in a monitored real-money options account over a 4 month time period. In December of 1989, Financial News Network named him "Guru of the Decade."
Prechter is the epitome of a contrarian.  In 1982 he said to get stocks for the last hurrah of the economic GRAND SUPER CYCLE.  No one believed him.  In 1995 he wrote, “AT THE CREST OF THE TIDAL WAVE.”  The book warned about the coming stock climax top leading to subsequent deflation to be followed by a large depression.  Again Prechter was spot on the money even if a little early.  Stocks peaked in 2000.
 
He has authored or edited 14 books, including “CONQUER THE CRASH” (2002), a New York Times best seller.  He publishes daily and monthly financial commentary backed up by a staff of over 40 people.

Robert Prechter says the deflation economics cycle started with the 2000 dot com stock mania bubble climax peak.  It may not bottom until 2016 to 2018. At that time most of your assets may have lost 90% in price and unemployment could be 30%.  Even the price of gold may drop in half.  CASH IS KING in deflation.  Japan has seen deflation for 20 years and now the rest of the world is catching the epidemic.  You cannot stop the pendulum from swinging.  Deflation economics will continue until the inflation is wrung out of the system in this Greater Depression which Robert Prechter says will not end until 2016.  He also says most asset prices will have dropped 90 percent and the U.S. dollar will be in a bull market until then.  The advice of Robert Prechter is important to your and the world's survival

Copyright 2010 by Delwyn Lounsbury – THE DEFLATION GURU
Use of this article allowed with attribution back to:
http://www.deflationeconomy.com