Prechter’s Dow 1,000 Doomsaying Draws Crowds

By Tiernan Ray

Elliott Wave guru Robert Prechter is back in the news today, with Friday’s article in The New York Times by Jeff Sommer now the most e-mailed article on Nytimes.com.

Bob Prechter, among the Dysphoric Luminaries suggesting there’s pain in store for the economy and for markets, told Sommer last week in a series of emails and phone calls that an “epic downswing is under way” and that investors should move into cash and Treasuries, exclusively, for years to come.

The coming doom is likened by Prechter to the South Sea Bubble of 1720, which cut off people’s appetite for buying stocks for 100 years.

Prechter thinks the Dow Industrials could see a greater-than-90% decline, to less than 1,000 over the next five or six years.

The Dow currently is up almost 100 points from Friday’s close at 9,784.