Please recall with me the prevailing investor sentiment from this time last year …
U.S. stocks had been in strong decline for more than a year. Some of the most celebrated bulls had turned into bears, and the few bears that did exist before the downturn had become even more bearish. The Daily Sentiment Index for the S&P registered an astonishing 3 percent bulls — virtually no one was betting on the upside — and the bleakest of forecasts for 2009 called for nothing short of financial apocalypse.
But well-known contrarian analyst Robert Prechter took the opposite side of the trade. Prechter, a long-time bear, emerged as a solitary bullish voice among overwhelming bearishness. After closing out a record short recommendation that gained 800 downside points in the S&P, he issued the following bullish warning to bears:
“The market is compressed, and when it finds a bottom and rallies, it will be sharp and scary for anyone who is short.”
In the following days, the mainstream media reported that “perma-bear” Robert Prechter had turned bullish — the reports were only half true. Prechter had, in fact, turned intermediate-term bullish, but he stopped short of recommending average investors to jump back in. Why?
Prechter saw something on the horizon that the shortsighted mainstream market watchers did not, which brings me to the untold portion of this story …
In Prechter’s eyes, the bear market is far from over, and what he expects to happen after the current rally ends is significantly important to how you position your portfolio now.
Prechter’s firm, Elliott Wave International, is now offering for a limited time The Most Important Investment Report You’ll Read in 2010. Inside, Prechter reveals his big-picture outlook for U.S. stocks and the U.S. economy. The eye-opening 13-page report, originally published for paying subscribers to his Elliott Wave Theorist, examines the government’s unprecedented involvement in the financial markets and private enterprise. It reveals what’s already taken place in candid detail then focuses you on what the government’s measures will actually do for the U.S. financial markets and economy.
Be assured, this report delivers analysis you will not find on the front page of The New York Times or Wall Street Journal. It delivers independent insights from the man who saw the bear market — and today’s bear market rally — coming when virtually no one else did.
But hurry! This free 13-page report is available for a limited-time only due to its timely content.
Please learn more about and download the free 13-page Most Important Report for 2010 now.
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.