StockHouse.com Interview
[www.stockhouse.com]
Market Timing Interviews
With Don Wolanchuk
Timer Digest's 13-time winner of "Timer of the Year"
• • •
Don Wolanchuk is a wave theorist with an impeccable track record, dating back to his August 21st 1987 Sell Signal of
the DJIA and December 4th 1987 Buy Signal of the same. At various times, Mr. Wolanchuk has been named Bond
Timer of the Year, Long Term Timer of the Year, Gold Timer of the year, and Timer of the Year. He has been bullish for
ten years and is ever more bullish today.
Mr. Wolanchuk is very easy to access and you can do so by calling 1-800-511-0781 from anywhere in North America
and 810-776-7555 outside of North America. Wolanchuk delivers timing advice on an $8,000/year hotline or through a
$2.75/minute 900#. Visit his website at www.wolanchuk.com
Many consider Wolanchuk one of the most accurate market timers in the world. He is frequently quoted in major U.S.
financial magazines and newspapers. He lives in a suburb outside of Detroit, Michigan.
STOCKHOUSE: Where is the DJIA going to close out the year?
Wolanchuk: We are in the mother of all bull markets. Where it closes out at the end of the year is really of no import. The end
result is, if you're not in the stock market, you're not going to make a dime on the upside. And if you waste your time, looking
for the final top of this bull market, and even if you did, what have you accomplished? You've accomplished nothing.
SH: What about the bearish elements that are frightening away investors?
Wolanchuk: Let's face it. Those who aren't in the market probably will never get in. They're waiting for a pullback. We get
these pullbacks and yet when the market pulls back, it's so frightening that the bears say, "Oh, this is the beginning of the end of
the world!" Then, the market goes straight up.
SH: Where is the price of gold going?
Wolanchuk: In my view, gold has finished a 17-year bear market. It's ready to blast off. Gold
will probably take out the all-time high. If you're going to have a stock market that's going to
crazy on the upside, it's going to discount an economic explosion. You can't have that without
inflation. With inflation you're going to have this huge runup in all of the natural resource sector.
The fact that everybody and his brother is yapping about deflation and depression, and all those
bears think it's the end of the world, everybody hates gold and all the metals and all the
commodities. You can't have a bottom until everybody is out. And everybody is out of the gold
sector. The Vancouver stock exchange, which is a natural resource sector, is turning up rather
nicely.
SH: You actually believe the Vancouver stock exchange is going higher?
Wolanchuk: Oh, absolutely. It's already started. It bottomed a few months ago. It ended right into a four-year cycle low - a
rather bullish Elliott Wave sequence. You look at the VSE and it's compressing into what we call a triangle. It's like a coil and
when it unwinds, it's going to be explosive. It could come at any day. You've got to remember there are cycles in everything.
You've got a four-year cycle. The Vancouver stock exchange bottomed, identical to the way the Dow Jones bottomed in 1982.
SH: How about the natural resource sector?
Wolanchuk: We bought front-month crude oil futures on the recent low. We're at the beginning of a major bull run for oil and
the Canadian dollar. I think the Canadian dollar is going to above the U.S. dollar. If you look at the Sydney All Ordinaries
Index, this thing is going crazy on the upside.
The fact that everybody and his brother is yapping about deflation and depression, and all those bears think it's the end of the
world, everybody hates gold and all the metals and all the commodities. You can't have a bottom until everybody is out. And
everybody is out of the gold sector.
SH: What about the rest of the stock markets for this year?
Wolanchuk: We may got into a funk in preparation for the big explosion in year 2000, because everybody's seemingly ready
to liquify themselves in front of Y2K and that's a possibility. Once they see that it's not the end of the world, there would be
such an explosion of stock buying, the market would go crazy to the upside. But, whether it happens this year or next year,
there's no doubt in my mind.
SH: Where would one invest to take advantage of this economic boom?
Wolanchuk: If we're right about this coming economic boom - and the world's just getting started in that direction, then
Microsoft and Dell are going to be kings along with IBM. Through the whole corrective process, over the past few months, the
technology sector has been showing such great relative strength. It's unbelievable. The technology sector still is the focus and
that's virtually guaranteeing that huge economic explosion is ahead. When we see signs of a commodity sector bottoming, that's
another great sign that the economic boom is coming. With the bond market falling apart, it's sensing the same thing.
SH: Where should aggressive investors be looking today?
Wolanchuk: For those who are under-invested, you buy start-up companies - the new, next generation companies. If you
were smart enough to buy Edison when they were just inventing the light bulb, you'd be a multi-millionaire right now. If you were
smart enough to buy Dell Computer or Microsoft when they were just a start-up company…
SH: Which stocks fit that potential growth model?
Wolanchuk: The next generation battery technology that is completely wiping out all old styles of battery technology is Valence
Technology [OTC BB - VLNC ]. They have all the patents to the next generation technology based on lithium polymer.
Motorola's next generation cell phone? They haven't said whose battery they are going to use. We know whose battery they're
going to use - all kinds of great things are coming for Valence.
Another one is called Wave Rider [OTC BB - WAVC]. They make and are getting ready to distribute an ultra high-speed
wireless internet access modem. The president of the company is the ex-president and CEO of Dell Canada and Dell Europe.
SH: Thank you, Mr. Wolancuk
[Note: Mr. Wolanchuk disclosed to StockHouse Interviews that he holds positions in Valence Technology and Wave Rider, but that he has
never been compensated by these companies.]
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