Read Prechter's Conquer the Crash for Free (8 Chapters)
InvestorEducation / Learn to Trade Jun 28, 2012 - 01:01 AM GMTBy: EWI
In June of 2002, the notorious dot.com bust was making way for a powerful housing boom, the European Union was growing, and American involvement in the Middle East promised a "quick and easy victory."
Yet when EWI President Robert Prechter's first edition of Conquer the Crash published ten years ago on this date, he wrote:
- "Home equity loans are brewing a terrible disaster."
- "What screams bubble -- giant historic bubble -- in real estate is the system-wide extension of massive amount of credit."
- "The Middle East should be a complete disaster."
- "Look for nations and states to split and shrink."
Today, 10 years later, the U.S. housing market still hasn't overcome its worst downturn since the Great Depression; the eurozone is in crisis, and the expected quick victory in Iraq became a drawn-out mess.
Prechter's analysis -- based on the Elliott Wave Principle and socionomics, the study of how social mood motivates social actions -- enabled him to foresee these changes in the economic, social, and political landscape.
What other eye-opening forecasts do the pages of the Conquer the Crash reveal? How about:
Banks: "Banks are not just lent to the hilt, they're past it. In a fearful market, liquidity even on these so called 'securities' [corporate, municipal, and mortgage-backed bonds] will dry up." (Remember the 2007-2009 "liquidity crisis"?)
Bonds: "The unprecedented mass of vulnerable bonds extant today is on the verge of a waterfall of downgrading." (Remember the 2011 downgrade of the U.S. Treasury bonds?)
Credit: Credit expansion schemes -- the primary role of the U.S. Federal Reserve Bank -- "have always ended in a bust." (Again, think back to the "credit crunch.")
And -- "Like the discomfort of drug addiction withdrawal, the discomfort of credit addiction withdrawal cannot be avoided." (You could say that again.)
Anticipating "shocks" to the global system is a remarkable and true, decade-long achievement of Prechter's Conquer the Crash. And on the 10th anniversary of its publication, we'd like to offer you 42 pages of excerpted material to commemorate Prechter's work.
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This article was syndicated by Elliott Wave International and was originally published under the headline 10 Years Ago Today: Prechter's Conquer the Crash Is Published. Read 8 Chapters Free Now. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.
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