Saturday, September 25, 2010

DJIA 1000

Just about everyone knows that Robert Prechter is using Elliott Wave patterns to forecast a decline in the DJIA to below 1000.  The most immediate question that arises is what underlying societal fundamentals could possibly coincide with that kind of catastrophic stock market crash?  

There are some theories.  A subscriber to my private email list sent me a link to "Crash Course," a compelling study of three fundamental developments, any one of which could drive our world into a devastating tailspin.  Two of the three could send the world into a deep, deep depression.  If all three were to come into fruition,  DJIA 1000 would be a gift.

To grossly oversimplify the three contingencies:
Peak Debt
Peak Oil
Peak Minerals
The full seminar of Crash Course  is over 3 hours long.   This is the version I recommend. Here is the link:  Crash Course

There is a 45-minute version, here is it's link:  45-minute Crash Course

Because I am providing a recommendation and these links doesn't necessarily mean I accept or endorse all of the arguments presented.  But remember, the question at issue is what could possibly underlie  Prechter's forecast?  The thesis in Crash Course is one explanation.

A

4 comments:

rob g said...

allan
if this transpires is it best to hold on to our gold and silver miners or will they go down with the market to?

A said...

I suspect that at least for awhile, gold, silver, copper, rare earth minerals (REE & MCP) and oil will all do well. What happens after that, ho knows?

Anonymous said...

Thanks for the Crash Course!
Here is additional interesting link:
http://www.youtube.com/watch?v=1gKX9TWRyfs

Dave said...

Chris Martenson has done an outstanding job of explaining the economy, energy and the environment and more importantly has connected the dots. After watching the 3 hour version, don't forget to watch chapter 20 which is not part of the original presentation. I wish I could convince my wife and daughter to take time out of their busy (social) schedules and watch it but they don't really want to hear the message. "One of these days, Alice."