Prechter says Dow going to less than 1000 in 5-6 years.

[Toro]

Seems pretty extreme to me.

Buy-and-hold stock investors will be devastated in a crash much worse than the declines of 2008 and early 2009 or the worst years of the Great Depression or the Panic of 1873, he predicted.

For a rough parallel, he said, go all the way back to England and the collapse of the South Sea Bubble in 1720, a crash that deterred people “from buying stocks for 100 years,” he said. This time, he said, “If I’m right, it will be such a shock that people will be telling their grandkids many years from now, ‘Don’t touch stocks.”’

The Dow, which now stands at 9,686.48, is likely to fall well below 1,000 over perhaps five or six years as a grand market cycle comes to an end, he said. That unraveling, combined with a depression and deflation, will make anyone holding cash “extremely grateful for their prudence.”

Get out of stocks, Robert Prechter warns - The Globe and Mail

Though I agree that now is not a good time to hold stocks in general, Dow at, say 900, means the end of the world is coming. That is a highly improbable event.

 

[xotoxi]

Does Robert Prechter have a picture of himself standing in a field shirtless?

 

[william the wie]

Look at the tax law changes scheduled for 1/1/11 and thereabouts. This congress has literally paid people to get out of stocks by New Year's.