Robert Prechter Still Worried About Deflation

Robert Prechter, president of Elliott Wave International, says deflation remains the primary problem, not inflation



Robert Prechter : ...."I think it is the major theme , what we've had is three major peaks in the market of the last dozen years and each one of them had an extreme liquidity period , we had the top in 2000 that's when the NASDAQ topped out it collapsed , it is going to come back to those highs , then we have  2006 , 2007 that's when the real estate topped in 2006 , the DOW topped in 2007 we had the commodities the index for example in 2008 , I do not think it will come back to new highs , now this third and what I believe will be the final mania run toward the ‘inflation is going to drown us all , has gotten new high in gold ..""When it's over and we head into the next decline and pessimism begins to build up again, people are going to stop focusing on...what they interpret as optimistic news, and start focusing on the fact real estate is making new lows and employment isn't responding."