Robert Prechter Interview for the Ages: Quick Takes on Big Financial Trends
‘That’s not even the craziest indicator on this chart. Look at the bottom graph.’
Robert Prechter’s June 23 interview with GoldSeek.com, which is under 15 minutes, covers a variety of financial topics.
They include stocks with an emphasis on the technology sector (including artificial intelligence), bitcoin, gold and silver, corporate bonds and the prospects for deflation.
You can look below to learn how to listen to the entire interview for free.
But, first, let me share with you just one of the interview topics, and that’s the stock-market sentiment which was on display leading up to the January 2022 top in the blue-chip indexes.
Relatedly, in the GoldSeek interview, Robert said:
Sentiment indicators… can tell you the extent to which [people] are extremely optimistic or pessimistic. Well, 2021 was a year like no other. Finally, in December 2021, I put out an issue called “A Stock Market Top for the Ages.”
Here’s one of the sentiment charts that the December 2021 Elliott Wave Theorist showed along with the commentary (The Elliott Wave Theorist is a monthly publication which covers major financial and cultural trends):
The middle graph is the ratio between the amount of money that Rydex investors have put into bullish funds versus bearish funds. Look toward the left, and you’ll see the words “normal range.”
[Fifteen] years ago, the ratio was around 1:1 or 2:1… In general there was a bit more money in bull funds than in bear.
Investors have been going crazy in the last five years. On November 19, the ratio reached 62:1…
That’s not even the craziest indicator on this chart. Look at the bottom graph, which depicts the ratio of leveraged bullish funds versus leveraged bearish funds. It shows that there is 82 times as much money in the leveraged bullish funds as there is in the leveraged bearish funds.
So, it wasn’t surprising that the Dow Industrials and the S&P 500 index topped early in the very next month.