Contrary to
Elliott Wave Theorist, most economists (and people in general) are predicting inflation ahead, rather than deflation. Every now and then an economist might admit deflation is possible, but will counter this with the argument that inflation will eventually reign. One of their arguments seems to be that the economic recovery has begun, and this will prevent the development of a deflationary spiral. But, are you willing to bet on the economists saying the recession is over?
Why can economists not entertain the concept of deflation? Partly, the answer is that they are so used to inflation being the norm, it has been the norm all of their lives, that they cannot comprehend such a massive shift. But just because we have not had a deflationary depression since the 1930's does not mean it cannot happen again.
Will we have deflation or inflation?
Despite a bear market rally we still have deflation. It's been happening in Japan for some time, now it's happening in Europe, in Britain, and in some states such as California. As the bear market returns in full force we will see deflation take a stronger hold. Credit expansion will slow further as banks become more wary of making loans, households will become more wary of spending as unemployment rises, retailers will be chasing fewer dollars and prices will fall. Stocks, commodities and property prices will all tumble again, to new lows. The funds to buy these will simply dry up as the full force of the collapsing credit bubble plays out globally.
Protecting your wealth in a deflationary scenario is very different to how it is done during times of inflation. Your approach should be very different, and this is why you need to be sure that you have the right prediction. Robert Prechter, using the Elliott Wave Principle, has been accurate in his predictions to date, and he is predicting deflation not inflation.
You will need specific information depending upon where your money is held. As the second wave of the credit crunch unfolds you will want to be able to pick winners before the race has run. You will want to know if gold really is a good place to put your money, or not. As times get tougher and deflation bites hardest you will need to know which are the safest banks, least likely to fail and most likely to return your money when you want it.
The
Elliott Wave Theorist is for those who realise that Wall St has got it wrong. That very few mainstream economists predicted the credit crunch and resulting economic chaos. That of the few who did see what was coming, Prechter and Elliott Wave were among the most specific and accurate.
If you have wealth to protect you need regular updated information from people who clearly know what they're talking about. You need clear specific advice on how to avoid your assets value disappearing when deflation takes hold.
