The Age of What to Do?
There was a wonderfully scary article in the business section of the
New York Times last month, in which a financial analyst predicted that
were in for the biggest stock market crash in 300 years.
Market forecaster Robert Prechter bases his warning on the theories of
accountant Ralph Nelson Elliott, whose Elliott Wave theory predicted
the fluctuations of the stock market in the 1930s and 40s. According
to this theory, we may be in for the biggest crash since the collapse
of the South Sea Bubble in 1720 (look it up in your old college econ
book), a financial disaster that was so devastating that people were
fearful of buying stocks for 100 years. Prechter says the Dow Jones
average is likely to sink below 1,000 points (its currently hovering
around 10,000) and stay there for years. This would put us back into
the economy of the Stone Age.