Quote: (11-08-2017 07:21 AM)Australia Sucks Wrote:
Tail Gunner you can make any asset class look good or bad by selectively cherry picking dates. Nobody said that stocks always win over every time period. However for anybody investing in stocks with a time horizon spanning many decades, cash will usually be a sucky investment. Warren Buffett has even said so and history proves it. Also CDs do have risk. Default risk, the risk of a massive spike in inflation, etc.
This article shows the returns from cash and bonds from 1926-2012. After taxes and inflation cash went backwards and bonds were barely in the black while stocks powered ahead. Now of course there may be certain periods of time when stocks give poor returns, but over the very long term cash and fixed income have almost always been dud investments. Logically it makes sense when you think about it that under a fiat system with inbuilt inflation cash will be a poor investment.
https://www.cheatsheet.com/stocks/histor...?a=viewall
As for Robert Prechter there are few who have managed to make as many horribly wrong calls as he has. He is a permabear and his Elliot Wave analysis has little to no scientific evidence to support it. Here a few links discussing how consistently bad his predictions have been:
http://www.avaresearch.com/articles/medi...ter-part-1
Robert Prechter recomended going 200% short on the U.S. stock market in November 2009 when stocks were cheap and the bull market was just getting started. In 2004 he predicted the Dow would eventually fall below 400!
https://www.cxoadvisory.com/3525/individ...-prechter/
In 2010 Prechter predicted the Dow would eventually fall below 1000 and investors should move to cash!
https://www.businessinsider.com.au/bob-p...?r=US&IR=T
In the above article it also discusses the performance of his Elliot Wave newsletter which over a period of nearly 25 years ending in 2009 he lost 98% while the stock market made hundreds of percent! To quote the article:
"The underperformance of Prechter’s newsletter is nothing short of astonishing and stunning! On an annualized basis, Prechter has underperformed the broad U.S. stock market Wilshire 5000 index by a whopping 25 per cent per year! Here’s what Hulbert’s analysis shows would have happened to $100,000 invested according to Prechter’s investing trading advice versus the Wilshire 5000 U.S. stock market index:
$100,000 Invested (1/1/85-5/31/09):
Wilshire 5000 Index $957,100
Prechter’s Trading Advice $1,700 "
You almost could not find a worse investment advisor/forecaster/newsletter writer if you tried! How does this guy even stay in business?
fear always sells