Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: At_The_Ask who wrote (65101)	2/1/2003 7:54:12 AM
From: skinowski	Read Replies (3) \| Respond to of 209892

From one of the articles (Sept 2002): In the interview, Prechter says: "Only the largest stock-market declines lead to depressions ... and those are the ones that follow ... a big amount of credit and a large mania of stocks that gets the public involved. I think the United States is in the middle of one of those." "The last major area will be a fall in real estate. The real-estate frenzy we saw this summer was a replay of the stock frenzy we saw in 2000. We went back 200 years looking at the major peaks and found the real-estate market tended to peak nearby, usually with a two-year lag." "What's going to happen when the stock market finally bottoms? You'll be able to go in there and buy stocks that used to trade at $85 a share for maybe half a dollar or a quarter of a dollar." "I'm not fully sure what will happen with gold and silver. Precious metals do not go up in deflationary periods unless there are price controls on them, as (gold) did in the '30s. The price of silver went down with everything else. I have five reasons why you should own (gold) anyway." Prechter also questions the safety of most money-market funds and bank deposits, which bankers have squandered on expensive real-estate loans that will plummet in value. The 53-year-old forecaster recommends a number of safe-money reports that rate banks by their lending reserves. At the heart of Prechter's case is the credit expansion of the 20th century. By some estimates, American households, companies and the government owe $30 trillion worldwide, an amount that is three times the country's entire yearly economic output. "The Fed (U.S. Federal Reserve) has thought for some time it could avoid a (credit crash)," he says. Prechter advises investors to seek only money-market funds with short-term Treasury bills in their portfolios. He envisions a wholesale collapse of nearly every form of paper, including stocks, corporate bonds and municipal bonds. "A lot of people think they're in cash equivalents when they're in money-market funds," he says. He suggests that investors investigate cash accounts in other countries with reputations for fiscal soundness, including Switzerland and Singapore. "Go ahead and panic, beat the rush," Prechter says. "If you do it early, you're not being paranoid. You're being prudent. We're only half way through this bear market." Having quoted the above, have a nice weekend, everyone...-g