Medium term Prechter is right. I also, from reading his works, as well as a sampling of a lot of other information which is out there have decided to pull the plug on all my muni bonds. Lets face it, getting 2.2% per year on %60 of my investments isn’t worth the risk of any future calamities which I see coming.
We have all the signs of a massive meltdown in the markets and the financial world, but as usual, most people see the signs and ignore the implications. I’m not doing it this time. Am I afraid that by getting out of stocks and bonds I will miss a recovery? NO WAY! We aren’t getting better, there will be no medium term recovery, but we might get pops up and down between 9K and 11K in the DOW (which is a worthless measure anyway)… So I consider my loss of income and moving to cash an insurance policy and a bet that deflation will continue as housing, employment, and then markets crash…
