Housing Market Double Dip

Neil Cavuto discusses the economy and the housing market with Robert Prechter.

In 1979 Prechter left Merrill Lynch and published the first subscription issue of the Elliott Wave Theorist. The 1970s had been very bullish years in the gold market but mostly bearish for stocks, yet his Elliott wave analysis called for a long-term reversal lower in gold (February 1980)and a long-term “super bull market underway” in stocks (October 1982).  Because these forecasts proved mostly correct—especially for the stock indexes—Prechter’s following grew.

His visibility increased further after he won the U.S. Trading Championship in 1984, with a then-record 444% return in a monitored options trading account. He was profiled in many financial and business publications and named “Guru of the Decade” by the Financial News Network (now CNBC) for the 1980s.

Prechter has been forecasting a large-scale bear market, as explained in his book Conquer the Crash.

Housing Market Double Dip

When I called the top and the San Diego real estate market in the summer of 2005, I think I was the lone voice crying out from the wilderness and immediately being labeled a bubblehead for predicting or even mentioning the possibility that San Diego real estate was in a bubble that was about the bust. So, I always endeavor to keep an open mind and listen to both sides as I believe my audience should do the same.