Social Safety Nets Mask Deflationary Depression
Submitted by jeff34761 on Wed, 08/12/2009 - 18:41
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In a recent video Robert Prechter says the Dollar's Hit a "Major Bottom" and that a deflationary depression is coming. According to Prechter, the Elliott Wave pattern in the US dollar confirms we recently hit the fifth wave down. Next stop is up. He also notes that sentiment has reached an extreme:
"The Dollar Sentiment Index for the Dollar Index reports just 3% bulls among traders, an extreme level only five times in the past 20 years, usually near an important low," Prechter wrote on Aug. 5. "The last time we saw readings like this was March-July 2008, just before the dollar soared." In other words, the "short the dollar" trade is overly crowded.
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