Pundits: Short the Dollar, Yen - Go Long Soft Grains, Natural Gas

[clb09]

Short the Dollar, Yen - Go Long Soft Commodities, Natural Gas

YouTube - Robert Prechter & the Severe Bear Market - RickSantelli.tv

 

[SLSteven]

Prechter is no longer calling for the deflationary collapse?

 

[SevenEyedJeff]

Prechter is no longer calling for the deflationary collapse?

He's just covering all his bases, so he can point back to whichever call he made and say he was right.

 

[eric_cartman]

Prechter is no longer calling for the deflationary collapse?

i think he was talking more short term here. i think over the next couple months, we could see a rally in the Euro and probably just have the US stock market stay range bound in this 10,000 area.

however, maybe in August, September or October is i think when Prechter thinks the big wave 3 collapse is coming, which will bring the stock market to new lows and the US dollar index to new highs. But the dollar index would probably have to decline to maybe around the 78 - 82 level before heading above 90, i would imagine, if the stock market breaks to new lows and we get the deflationary collapse that Prechter is predicting. I think he could be correct with his prediction... but where i think he is wrong is that i think the Fed will do a lot of quantitative easing and destroy the currency a lot sooner than Prechter thinks. If we get debt monitzation at the same time as a deflationary collapse in asset prices and the decline in value of various debt instruments... it's hard to know what will win out. the thought is that deflation will win in the short run, but inflation will win in the long run. It's possible we have a deflationary collapse, and then a couple weeks later, the currency gets destroyed. So it's hard to know if this will all play out over minutes, hours, days, weeks or years.

but you're right... i haven't seen him do an interview in a little while... and i was hearing him talk about the wave 3 decline and how the DOW was going to go to triple digits... but it didn't sound like he was he was saying any of that this time.