Robert Prechter, "We are on schedule for a very, very long bear market period"

By on June 3, 2010

Robert Jay, writing for Elliott Wave International, says that stock markets don’t typically behave the way investors expect by quoting Robert Prechter:

“In the 1720s, extreme over-optimism developed in what came to be known as the South Sea Bubble, which Mackay (1980) described in his work, Extraordinary Delusions and the Madness of Crowds. The social mood retrenchment from the South Sea Bubble ended in 1784, a 64-year period of retrenchment that should give pause to those with a buy-and-hold strategy.”
— Bob Prechter, The Elliott Wave Theorist, June 2001.

Prechter recently (May 20th) said he believed there would be a very long bear market following the recent long period of prosperity.

Click on graph for larger image:

Source: Elliott Wave International
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