Prechter: “Can you believe those articles?”
Me: “No, I can’t. We’ve seen enough of them at the various tops,
but it’s always a total frickin’ surprise to me.”
The subject of the exchange between Bob Prechter and me this morning was a series of recently published bullish articles he compiled for his current issue of The Elliott Wave Theorist.
Here’s a partial list:
We have entered a 15-to 20-year bull market, 12/20/13, CNBC.com
Don’t fret about soaring asset prices–this time it’s different, 12/29/13, Bloomberg
We live in the best of times, so don’t buy the media gloom, 12/30/13, Sidney Morning Herald
Gov’t officials express optimism in stock market, 12/31/13, China Post (Taipei, Taiwan)
Economy poised for strong 2014, 1/1/14, Atlanta Journal-Constitution
Market Prediction: Bull will keep charging in 2014, 1/2/14, USA Today
Could the stock market at last be ready to boom?, 1/3/14, Express (London)
Global economic growth “will quicken, more than most anticipate.”, 1/5/14, Wall Street Journal
Bull Market has years left based on S&P 500 valuations, 1/6/14, Bloomberg
Commercial property will offer “double-digit returns” in 2014, 1/10/14, Telegraph (London)
There are many more like this in the report, but you get the idea.. The notable thing about financial reporting is that, at social mood extremes, it stops being journalism and morphs into forecasting–always dead wrong. It is the result of journalists being compelled by the powerful mood of the moment to make linear projections of present conditions. Having seen this both at tops (erroneous enthusiasm), and at bottoms (misplaced pessimism), I can state with conviction that the last thing anyone should want to do now is own any investment asset other than cash.
No one should consider any part of this presentation as a recommendation to buy or sell any securities whatsoever.