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The Silent Crash - and What Happens Next: The Elliott Wave Theorist

The document discusses the Elliott Wave Theory and its predictions for an impending stock market crash and downturn in the real estate market based on historical financial patterns and indicators. It includes 38 figures showing charts and data related to stock prices, market capitalization, housing prices, interest rates and other economic indicators.

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0% found this document useful (0 votes)
98 views39 pages

The Silent Crash - and What Happens Next: The Elliott Wave Theorist

The document discusses the Elliott Wave Theory and its predictions for an impending stock market crash and downturn in the real estate market based on historical financial patterns and indicators. It includes 38 figures showing charts and data related to stock prices, market capitalization, housing prices, interest rates and other economic indicators.

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The Silent Crash

and What Happens Next

The Elliott Wave Theorist


December 15, 2006 issue

Robert R. Prechter, Jr., CMT

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Real Estate Is Crashing Too:

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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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BEST COUNT
FOR DJIA
ha
nn
el

DJIA monthly

pa
r

al
lel
c

log scale

4
1
2

IV

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BOND BUYER 20-BOND AVERAGE


arithmetic scale

investment mania top?

inflation
low
(1981)

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Figure 38

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