Robert Prechter: Significant Fall Coming, 2008 Just A Warm Up! (CNBC, 11/4)

Prechter is back and looks like he just saw a completed corrective wave. "This market rally is over", according to Robert Prechter of Elliott Wave International. He said stocks are overvalued when looking at historical bottoms, specifically dividend yields and P/E ratios. He also said poor market internals (lower volume, advance/decline ratios dwindling away) and extreme bullishness are other factors. He did not get into Elliott Waves, if I'm not mistaken. He should get into E-Wave details.

CNBC's Maria Bartiromo: "How significant could a fall be?"

Robert Prechter: "Very significant. We had I think a warm up in 2008 that was a big leg down but I think the one we're in will be at least that large. It's not going to be a U or W type of bottom. I don't think we've hit the V bottom yet, that's what is coming up". "I'm very bullish on the Dollar. I think it's going to be up for a year or two".

He thinks people should be in Treasury Bills not stocks, commodities or real estate. On his site he's offering a free 50-page eBook called "The Ultimate Technical Analysis Handbook".




Disclosure for FTC:  DV works as an affiliate for Elliott Wave International, I have followed Bob Prechter's work and am confident in the quality of his products and services.