I have been a subscriber of EW since early 2008 and I have read every monthly Financial Forecaster and Theory to date. Robert Prechter has been a raging bear since pretty much the mid 1990s. He claims to have been bullish prior to the 1973 and 1982 lift off however that was 30 years ago. The site was a raging short in the late 1990s calling for tops which led to tech bubble crash of 2000-2002 but remained bearish when markets rebounded until 2007. Unless you were put in a time capsule, we all know what happened in 2008. EW claims that this was a "credit bubble" and dismisses it's incorrect calls as 2008 financial crisis led to S&P 500 hitting 666 mark. I will give them one credit is that they called the bottom within a month of the upturn in the markets calling for a "bear market rally." They got very bearish again in April of 2010 just prior to the "flash crash" a month later but on the market went (UP). They fed on the bearish call post USA credit downgrade; UP and away in fall of 2011. The rally from March 2009 low to 2013 has been meaningful, leading to new fresh highs on the Dow Industrial Jones. When market levels hit highs such as this, it is NOT a bear market rally but EW still thinks so.
What really pisses me off is that they have lost money OVER and OVER for its subscribers but they continue to lure new bearish subscribers in by advertising in their "free clips" how they had the "right call" and made you think that subscribers were swimming in money- I don't think so. This is complete nonsense as a broken clock is right twice a day. A good example would be one article I recall; "if you had read the metals report, you would have read that EW predicted the downturn in Silver/Gold on 00/00/0000." Well, they have been calling for Silver to turn down since mid teens and up and a way it went to $50.00 and Gold to over $1900. Do you get the picture? You would be flat BROKE being on the short side. They take advantage of this during every small downturn and blow it up to be the next "BIG ONE." Ring, Ring, Ring.....Margin Call from Charles Schwab.
They criticize the media for putting out bullish calls at the wrong times (sentiment indicator). Newspapers, magazines and books all produce bullish topics of note and they state that this is typically the wrong time and view it as a contrarian indicator. If that is the case then EW's two books have come out at the absolute bottom years; in 2002 and 2009. So if he only followed his own rules, he should put out a book TODAY (Sept. 2013) when everyone is bullish. Why wait for the bottom for the three part trilogy?
What has he been right on since 2008? He was correct with his bottom in interest rates call which he wrote in June or July of 2012, weakness in emerging market currencies and I think that pretty much wraps it up. There are some good data points that he sums up in one report such as short interest trends, buy-back trends, inside sales trends, various sentiment indicators, occasional Ports cargo data, economic data etc. They were correct on the USD FX bullish call but again only for a short period.
Will you make money if you subscribe? Probably NOT but you will be prepared for a downturn when the globe melts down, IF it does that is. Markets correct every 6-8 years and I'm sure their subscriber growth numbers climb during years of uncertainty and they feed on that during those periods. I would point you to read zerohedge.com which is free and has many cynical commentary as well.
Let me end it like the Elliot Wave way; "the market is in an ideal position for a fresh move down HOWEVER it can rally to new highs which would be labeled c of V wave which should be a throw-over rally." How can you go wrong with that call?
This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
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