At the end of last month, I did a blog entry where economist Paul Krugman warns that we are headed for a third Depression, rivalling the Panic of 1873 and the Financial Crisis of 1929-1931.
Now we have a warning from Robert Prechter, chief of Elliott Wave International, the world's biggest independent financial forecasting firm that investors should take cover. The New York Times says Prechter reckons we have probably entered the biggest market decline in 300 years, on a par with the collapse of the South Sea Bubble in 1720. It took the world more than a hundred years to get over that one. If he's right, the smart thing to do would be to get out of stocks and stay in cash or cash equivalents.
Dan Dorfman from the Investing Contrarian, agrees that we are moving into a Papa Bear market with slowing global growth, sovereign debt risks and a slowdown in Chinese growth.
It's time to duck for cover.
no comment untill now