Why Protecting Your Assets is More Important Than Ever

The Stock Market Topping Process of a Lifetime

 

The bursting of the Internet bubble in 2000 devastated millions of investors, most obviously those who held shares of tech stocks. That bear market lasted three years (2000-2002), but was not enough to stop the resurgence of the stock market mania that drove prices to an all-time high in 2007.

And even after this more recent and deeper plunge of 2007-2008, many investors are still bullish today.

For example, this Yahoo! Finance headline from Sept. 24: "Market Mood Swings Back to Elation: Will the Good Times Last?"

Similar headlines are now common in the financial media.

Is it possible that the bullish majority is right? Robert Prechter wrote in the September Elliott Wave Theorist:

"The public always does the wrong thing. Investors have gone from the frying pan (the NASDAQ in early 2000) into the oven (real estate in 2006) into the steamer (the Dow in 2007) onto the grill (commodities in 2008) and now into the fire. Each time, they are sure that their decision is sound."

Gloom and Doom? No more so than a flood warning is a "gloom and doom forecast" when a river is rising rapidly. Those who live by the river welcome the warning. It's how they know to seek higher ground. The warning is not relevant to the actual flood waters, yet it's absolutely essential to the future of the residents.

What do you think?

Eduard Hamamjian

GeaSphere LLC