- Part I - Prechter believes the dollar has bottomed, because of the formation in the Elliott Wave pattern, and also the extreme bearish sentiment we're seeing.
- Part II - He explains his deflationary depression hypothesis and why he believes the next big phase thing we'll see will be a massive "credit implosion" - which will set off a mad dash for dollars.
I really love his line:
This is how markets work - they give you a story at the bottom, and a story at the top.
He shared this when asked about the mainstream reaction to the stock market rally (inflation and commodities are back, etc). Prechter believes that markets make the news, not the other way around.
If you enjoy Prechter's insights, they have a lot of great, free content available if you sign up for Club EWI -now's actually a good time to do it, as they're giving away a free Ebook until the end of the week.
We will, of course, continue to cover his analysis here - I'm a big fan and an EWI subscriber myself. And I have a sneaking suspicion that as crazy as his theories can sound, he might be right on the ball here - it wouldn't be the first time Prechter's contrarian views were correct - so I am listening and following closely.
Recent articles from Bob Prechter: