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Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Robert Prechter's Conquer the Crash New 2009 Second Edition, Survive Deflation

Stock-Markets / Deflation Oct 14, 2009 - 06:10 AM GMT

By: EWI

Stock-Markets

Today's financial and economic tribulations were a long time in the making. Many people ask, "Why didn't someone see it coming?"

But a New York Times best selling book did see it coming. More than 100,000 people read it in time to protect their wealth.


They read this about real estate:

What screams 'bubble' – giant, historic bubble – in real estate today is the system-wide extension of massive amounts of credit to finance property purchases.... Many people have been rushing to borrow the last pennies possible on their homes. They have been taking out home equity loans so they can buy stocks and TVs and cars and whatever else their hearts desire at the moment. This widespread practice is brewing a terrible disaster.

And this about stocks:

...the number one precaution to take at the start of a deflationary crash is to make sure that your investment capital is not invested in stocks, stock mutual funds, stock index futures or any other equity-based investment.

About Fannie Mae and Freddie Mac:

Investors in these companies’ stocks and bonds will be just as surprised when [Fannie and Freddie's] stock prices and bond ratings collapse. Most rating services will not see it coming.

About junk bonds:

Don't think you will be safe buying bonds rated BBB or above. If you have invested in municipal bonds, consumer debt, real estate debt, junk bonds or anything other than top-grade paper, sell it at today’s lofty prices.

All these observations are from Robert Prechter's Conquer the Crash, first published in early 2002, when the Dow was above 10,000 and the financial world was partying around-the-clock. Fast forward to today: The average U.S. homeowner has suffered a decline of 30% to 40% in property value. Stocks and commodities had their biggest fall since 1929-1932. Fannie Mae is a zombie corporation under the government’s protection.

If Prechter thought a whole new book would help, he'd have written one. But Conquer the Crash is a book-length forecast that's still coming true-- only some of the future has caught up with the specific predictions he published back then. There is much more to come. And that means more danger but also great opportunity.

The same authorities who said "the worst can't happen" now claim that "the worst is over."  That's one of the many reasons why Prechter is choosing now to put out a second edition of Conquer the Crash.

Conquer the Crash, Second Edition, offers you 188 new pages (480 pages total) expanding Prechter’s unique deflationary argument and escorting the reader through the stock market’s manic climb to the 2007 peak. (If you think you remember this period, wait till you read Prechter’s description.) And it still includes all the original forecasts and recommendations that make the book as compelling and as relevant as the day it published.

In every disaster, only a very few people prepare themselves beforehand. Think about investor enthusiasm in 2005-2008, and you'll realize it's true. Even fewer people will be ready for the soon-approaching, next leg down of the unfolding depression.

Prechter warns that the doors to financial safety are closing all over the world. Prudent people need to act while they still can.

This book is a must-read.

Learn more about the special pre-order offer for Robert Prechter's bestseller, Conquer the Crash, Second Edition.

About the Publisher, Elliott Wave International

Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private around the world.


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