The Silent Crash
and What Happens Next
The Elliott Wave Theorist
December 15, 2006 issue
Robert R. Prechter, Jr., CMT
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Figure 1
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Figure 8
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Figure 9
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Figure 10
Real Estate Is Crashing Too:
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Figure 11
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Figure 20
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Figure 21
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Figure 22
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Figure 23
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Figure 24
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Figure 25
Mar. 2000
183.0%
STOCK MARKET CAPITALIZATION
AS A PERCENTAGE OF NOMINAL GDP
Last (June 2006) 120.53%
Stock Market Capitalization = $15.903 Trillion
Nominal GDP = $13.914 Trillion
Aug. 1929
81.4%
Nov. 1968 Dec. 1972
77.8%
78.1%
average = 55.79
Sep. 1974 Jul. 1982
33.5%
33.7%
Apr. 1942
16.0%
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Figure 26
Stock Mutual Funds Cash/Assets Ratio vs. Aggregate Stock Prices
Monthly Data December 1965 - October 2005 (Log Scale)
S&P 500
High Cash
Low Cash
4.5%
3.9%
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4.0%
3.8%
Figure 27
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Figure 32
BEST COUNT
FOR DJIA
ha
nn
el
DJIA monthly
pa
r
al
lel
c
log scale
4
1
2
IV
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Figure 33
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Figure 34
BOND BUYER 20-BOND AVERAGE
arithmetic scale
investment mania top?
inflation
low
(1981)
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Figure 35
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Figure 38