Thursday, February 25, 2010

Another Market Crash Coming for 2010? (VIDEO).

Stock market analyst Robert Prechter is seeing what he calls "the Biggest Bubble in History", and that's not a good thing for investors.

According to The Wall Street Journal, Prechter told the Society of Technical Analysts in London that we are in the midst of a "grand, super-cycle top" and that all the signs are pointing toward a big market correction.

He's got some street cred, given that he called the recent rally back in February of 2009. In fact, he said it would be "sharp and scary" for anyone shorting the market at that time.

According to Prechter, the most recent recovery gave all the text book signs and now he seeing text book signs again, but they foretell a big correction on the horizon. He points to the near record low levels of cash at mutual funds. He sees those levels approaching levels seen near major tops in 1973, 2000 and 2007.

As for the "Biggest Bubble in History", he says that's debt. Specifically, Corporate debt, municipal debt, mortgages and consumer loans which he speculates will get hammered by the deflationary period that began with 2005's turnaround in home prices.

Time will tell if he's right, but it may be time to put your stops in place and watch this video to see Prechter in his own words.

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