Understanding Elliott Wave Theory and Investment Strategies – Andy Tanner and Bob Prechter

Understanding Elliott Wave Theory and Investment Strategies – Andy Tanner and Bob Prechter

I think several absolutely major
gigantic areas of investment are
overblown to a historic maximum welcome
to the Cashville Academy podcast I’m
your host Andy Tanner this is where we
do our very best to make investing and
all things entrepreneurship cash flow we
try to make it simple uh wonderful guest
on on Deck day we have Robert pror and
uh he is just brilliant um he’s written
three books we’ll get into uh his
newsletter and all the things that he
does but uh just by way of announcement
drop by
congratulations on all your success too
well we we’re we’re trying to move along
and our success is predicated on the
success of our students so we’re we’re
grateful for that you’ve written three
books you’ve written Elliot wave
principle key to Market behavior and as
a as a student of technical analysis I
find the Elliot wave really different
from a lot of the technical indicators
people use so we’ll delve into that and
I have a few questions on that uh the
second book last chance to conquer the
crash you can survive and prosper in a
deflationary depression that’s a huge
and and the the blurbs on this book have
been fantastic some people said this is
the guide book for depression and we’re
fighting that constantly it seems with
the Fed so we’ll talk about inflationary
pressures we’ll talk about deflationary
pressures and what those look like and
then we have the so uh socionomic theory
of Finance we’ll have you this is a lot
to cover in the in the time that we have
then we’ll talk about anything you want
after that so let’s start off just with
your background uh I I mentioned before
we started recording the show that I did
not go to Yale on a scholarship they
won’t let in fact I they probably have
restraining orders of some kind against
guys like me but but tell us a little
bit about your pathway to Yale and uh
what happened after that and that you
took a different path than many of your
classmates yeah well I went to high
school in Atlanta Georgia I was born as
connected New York but my father worked
for General Electric so he was
transferred to Atlanta when I was seven
years old so I grew up there and then
went to the Northeast for college uh
spent 14 years there thereafter living
in Connecticut in New York in the
surrounding
areas um when I got out of
college um I really did not want to
pursue uh the major that I took which
was
psychology I was beginning to get
interested in finance um I was in a band
and played music for a few years my
father was a subscriber to Richard
Russell’s Dow Theory letters which I
loved and from the first moment I got
introduced to the financial markets I
was tight with technical analysis um I
got a job at meril Lynch in 1975 working
for the market analysis Department under
Bob frell who was an absolutely terrific
boss um and we did technical analysis
and each each major analyst in the group
had a specialty um one guy specialized
in options one guy in interest rates and
my specialty was the wave principle RN
Elliot’s theory of market movement and
time Cycles so that was a lot of fun and
then in 1979 I split went independent my
wife and I started a business on the
kitchen table and here we are today well
you mentioned uh your musical background
I thought it was interesting because on
the cover of one of your books there’s
uh in the background if you look careful
there’s a bit of a score that I noticed
and I thought and and I thought to
myself I’m my my sisters are very
accomplished pianists you know they can
play the the chopan and the classical
stuff of course to rebel against my
parents I became a drummer which is what
you do when you don’t have the talent
your sisters have but I think there’s
there I I surprise you brought that up
and not because when if you have some
musical training
uh you’ll hear things differently than
other people will for example if uh if I
listen to Peter Gabriel’s Salsbury Hill
I noticed that that’s in 74 time which
is an odd time signature literally an
odd time signature and then he’ll go to
two bars of 44 and back to 74 and you
know as you if you understand scales and
key changes and Dynamics and as an
arranger you might even see the
potentials of what the song could have
been and you listen to things different
ly if you have that training well I
think the markets are very much the same
is when I look at a at a chart uh I
might as and I’m an amateur musician and
an amateur technical analysis but I’ll
see things that maybe other people don’t
see in those charts so I thought that
was kind of an interesting comment uh
that I noticed that in your resume that
you were a musician well in fact drums
were my instrument as well oh so we’re
percussionists we like to beat on things
my band actually got some interest we
had a record company was interested in
us and we ended up doing a demo record
album um of songs that I wrote sometimes
in partnership with one of the guitar
players and um it ended up uh just being
a demo album we we were never signed but
it’s kind of caught on
underground and was quite I found out
later that copies were going for $75 in
Japan
[Laughter]
Bon ch’s Big in Japan I guess whatever
so so somebody contacted me from
California and he said you know I I love
obscure albums and and I have an
arrangement with somebody in Korea and
we print CDs out of them so they ended
up making a CD and and if you go to uh
Robert precor.com and click on the bio
you can scroll down and and find out
where you can uh hear the malous sounds
of the band I was in back in 197 that’s
that’s fantastic well music has to do
with uh pitch duration Tempo and uh
technical analysis has uh a similar a
similar thing is that we’re traveling in
time uh left to right so we have timing
that goes on and we have it ups and
downs as well well listen about you know
you get an ear when you play music for a
while you get an ear you can tell uh you
know seven eight time from 44 and all
that sort of thing uh you can tell when
somebody’s on key or off key uh you know
what a Harmony above and Harmony below
are about um and that is definitely the
case if you study stock market charts
for a while when I started it was 1973
and I was keeping charts of gold and
charts of the Industrial Average by hand
and um after a while I started realizing
that you know this this Elliot wave um
uh Discovery I would say that markets
move in waves predetermined essentially
waves of patterns of psychological
change so when people are um you know
really scared and then they start
changing toward more optimistic they go
through a series of psychological
changes and they show up as chart
changes and I was looking at these
charts saying yeah I can see the five
waves going in the direction of the main
Trend and three waves going against the
trend you know over and over again there
must be something to it and that’s what
kicked it off what’s been different for
me with Elliot wave theory and and for
those that uh you know I we have a very
educated audience uh very sophistic ated
by and large but we all have have some
newbies that I try to reassure that if
you stick with it this stuff will will
start to stick but you know I look at at
the opportunities of the market both
from a a cash flow standpoint which is
really what I believe is a better
Foundation than a capital gain
standpoint at least in everyone kind of
finds their Rhythm so for example I’d
rather collect rent than flip a house
and I’ll look at a chart of price action
that I get from Zillow on my proper
properties they seem to think I care if
my property went up or down a certain
amount but it’s really the rent that I’m
worried about and in
equities I love a foundation with great
dividend and I will use a lot of my
technical analysis you know stocks I
like to own options you have to trade
you can’t own an option uh they’re going
to expire so you have to be a bit of a
technical analyst and understand that
timing but I found as a technical guy I
like to choose a range better in a
direction it’s just easy iier for me to
say look I think this option you talked
about above and below I think this this
call option is going to expire out of
the money I think this put options going
to expire out of the money and I’ll use
that cash flow to supplement I also you
know I I get support and resistance um
you know this is where people a lot of
people bought this a lot of people sold
a macd might say hey things are changed
momentum but El wave theory uh has
always been an enigma to me because it
has to do with I just feel like there’s
so much chaos in the market how do those
five patterns why is it five and not
three uh why is it that we see Fibonacci
numbers in in nautiluses and in galaxies
and in snail shells you know why is it
this way well you you use the word chaos
what’s interesting here is that the
market appears chaotic but it’s actually
quite structured because it’s a fractal
and here is ourn Elliot back in 19 35
through 1938 when he finally wrote his
first
book studying Market movements and
saying I think that the components of
the waves that I’ve discerned um add up
and create the larger versions of the
very same picture and those add up to
create larger versions the very same
picture and he described something that
Beno mandelo many decades later
described as a fractal and he found
fractals and cotton prices and other
things so Elliot was way ahead of his
time but unlike
uh the other people who studied fractals
um Elliot said it’s not an indefinite
fractal um but it’s not a self-identical
one either if it were self-identical
everybody could glance at the Mark oh I
know exactly where it is so that’s not
the way it is and the word term I use is
robust fractal which means there’s an
essential design but plenty of room for
differences in duration differences in
price movement differences in percentage
price movement um and that’s what gives
uh the market its structure but the
leeway is what gives the market options
and it’s always got options and you need
to study what we call the rules and
guidelines of the way waves develop it’s
a whole other subject but my son has
been went to MIT and he’s been working
on a computer program uh that discerns
OT waves and and U it’s doing an amazing
job of doing that and we’re about to
prove I believe in an academic paper
that Elliot waves are real because the
other side of the coin that people argue
is oh the Market’s random that the daily
changes for example tea leaves right
we’re seeing stuff in the tea leaves
people say yeah yeah that’s an old uh
comment but people are are waking up to
the fact that there’s something else
going on there U but we’re I think we’re
going to be able to show that random
distributions of of individual market
prices do not produce aliot waves
whereas actual Market changes do produce
El waves so I’m looking forward to that
I’m hoping sometime late this year uh we
might have a paper on this subject and
get it up into the site oh we we have to
have you back when that happens uh pick
up a copy of Elliot W principle key to
Market Behavior as part of your library
I read lots of books on technical
analysis and fundamental analysis if
you’re going to be an investor uh more
more knowledge is better for sure let’s
talk a little bit about uh last chance
to conquer the crash uh I see lots of
deflationary forces I see inflationary
forces to me technology is largely
deflationary
because we get more with less uh I look
at my cell phone today and what I get
for it in terms of what I pay and what
it would have taken to replicate those
benefits 20 years ago or 40 years ago it
would have cost you know multiples of of
what it does so I I think globalization
is deflationary we saw in covid uh where
we we had more localization and and it
was certainly uh uh you know rough that
rough that way or inflationary and so we
have pressures and and we look at the
amount of money I I I look at the
Federal Reserve uh liability side with
those four main accounts uh they have
the treasury which they keep their money
not a big deal they have the repo Market
which has grown the reverse repo Market
they have uh the currency in circulation
which I think is the biggest measure of
inflation and then they have the the one
that I worry about which is after the
crash of 08 they let you put deposits at
the FED there’s a lot of money at the
FED that they just hold there as
deposits they can pull it out and Loan
it any time that they’d be able to so I
see the FED is in a very difficult place
in that they’re they’re looking to
freeze interest rates but uh I still
think they could have some infl
inflationary pressure because of the
amount of currency in the economy so
with that long- winded question uh what
do you think about the fed’s uh position
and
rates first of all I like to distinguish
uh when people use the term inflation or
deflation between prices changing and
the actual mechanism of inflating which
is to create new money or new credit so
to me uh things such as technology and
Innovation do lead to lower prices but
that’s very different from at least in
my mind from inflation or deflation
which is entirely a function of the
money supply money supply and the credit
Supply now uh the FED as you know since
it was created in
1913 uh created a whole bunch of new
accounting units that they call money
which is not money but they’re just
accounting and recently they got up to
nine trillion of them uh that is
inflationary and unfortunately their
mission is also to extend credit it’s
also to back up the banks so that the
banks can extend way more credit that
they than they would ever consider
extending the free market because they
would be liable and they’d have to make
sure that they recovered the money that
they lent out well now that the fed’s
backing them up they don’t have to do
that that’s the whole reason it was
created so that the the banks could use
other people’s money to get rich and
never lose you know so it’s a racket
however some interesting things have
been going on recently and I know you’re
up with this as well and that is that
the FED has been actually decreasing its
balance sheet to the greatest percentage
amount that’s ever occurred now that you
have to weigh that against the
background of well they just created
Morey n
trillion 2008 they created eight
trillion new dollars and what was it
2022 I think yeah still um that is a
very that not just a rare thing it’s
Unique that they have decrease the money
supply by that amount and I think that’s
one of the headwinds uh that the markets
are facing right now um but the big
problem is not just the not the fed’s
balance sheet as big as it is it’s the
fact that that has been the basis for
Lending on top of lending on top of
lending on top of derivative creation
and all of it is IUS and they you know
at least one quadrillion worth out some
even more than that so that is the issue
and if credit if if debtors ever start
defaulting and and I’m sure you’ve
noticed recently credit card defaults
are a new all-time high on a percentage
basis right now when when debtor start
saying I can’t I’m sorry I can’t pay to
me that is when you’re at the risk of of
a deflation that is Swift and huge and
something that the FED would have
extreme difficulty combating I I think
we’re going to have a they call this the
everything bubble and you spoke of the
the you know the derivatives that are
there The Leverage that is there there
certainly is a federal reserve put as
people used to call it the bernacki put
it’s really the fed put and it’s it’s
not really a capitalistic idea because
capitalism is built on someone’s ability
to fail and uh those guys you know they
they’ll get bailed out with the with the
policy change and you know there it is
so it I I do think a big one coming
however I think it
presents just one of the most massive
opportunities it’s hard to put your
finger on it because I look at our
fiscal irresponsibility that’s not
helping things um the the the the CBO or
uh uh the the Congressional budget
office and the treasury all three
reports use the word unsustainable
fiscal path referring to the promised
money not necessarily the borrowed but
the promised of what is that 200
trillion or whatever it is either way
it’s right yes it’s it’s more than we
our GDP cannot generate uh enough taxes
to to cover that stuff we have to borrow
to sustain so when that falls apart um
tell us a little bit about the last
chance to conquer the TR crash can you
give me a couple of uh tidbits from
prospering in the deflationary in in in
a depression obviously uh cash becomes
more valuable so people tend to want
that is it precious metals is it is it
estate is it just being a general
producer uh give me a couple of tidbits
on uh conquering conquering those
deflationary environments yeah I think
several absolutely major gigantic areas
of investment are overblown to a
historic maximum and they’re in the
stock market which is the most
overvalued it’s ever been it’s in the
real estate market which was bulled up
recently by Wall Street institutions who
decided that houses were investment and
we can talk about as well I don’t think
they are but they currently think one
day they’re going to dump them when they
finally when they’re down 50% and they
you realize oh we gotta keep we have to
keep fixing the things up every year
every time somebody moves out because
it’s a uh they’re going to just dump
those things so I think there are
declines likely in stocks likely in real
estate and definitely likely in
corporate bonds especially the junk area
all we need is a much less a depression
and those things are not going to pay
off and then you’ve got Bitcoin which
people went crazy over and you’ve got
nfts which people went crazy over I
think all of those things are either so
overdone you don’t want to touch them or
already beginning uh to head into bare
markets so what are the Alternatives
well in January 2022 I wrote this book
last chance to conquer the crash and I
said we’re go we want the Investments
that everybody is
ignoring and the biggest one and you’re
a cash flow guy uh is treasury bills and
a version of treasury bills uh called
floating rate notes F frns which I
stumbled across a few years ago and I
said these things are glorious what they
do is they’re a two-year note but
they’re pegged every 90 days to the t-
bill rate so the FL rate fluctuates and
you don’t have to roll them over every
30 60 or 90 days you just let the note
sit there and do it for you and you
don’t buy a new one for two years out
well as you know interest rates started
up uh around that time
back to the highest levels in many years
at
5.4 I think is the yield right now in t-
bills that’s way more than the S&P is
yielding which is one and a half per. so
people have to absolutely believe in
capital gains uh if they’re going to own
the S&P and the NASDAQ especially which
has no dividends to speak of so uh that
is one of the main areas and the other
areas i’ liked and still like are gold
and silver because they’ve been
completely ignored um and now gold has
been making it’s popping it’s popping
and guess what else started popping
about a month ago or two months ago and
that was silver um so I’m not saying
these things are going to make anybody
Rich um I don’t know where they’re going
but I would avoid all of the areas that
are overvalued and over owned and over
they’re in Manas frankly they’re they’re
at the top of Manas in my view and get
these things that nobody is paying
attention to and here’s a little clue
about about gold or whether it has more
to go on the upside even though it’s at
a new all-time high small
Traders uh which are reported on by uh
commodity Futures Trading commission are
selling into the rally now these are
people that will be buying when the top
occurs there’s no question about it but
now they’re cautious they oh Gold’s in
alltime high I need to sell it I think
it’s early enough in the gold Trend to
say you know we’re not we don’t want to
get out of that stuff yet I think
there’s a lot more to go and when things
get tough I think people are going to go
in that that direction uh you mentioned
the the expensive nature of the markets
right now I I was looking at uh the
Schiller PE index recently and we’re
paying about as much for a dollar of
earnings as we ever have and it made me
think of the people in a 40K who are on
autopilot and I I I wish they would I
wish we had more listeners to this
program because you know if you have
$1,000 a month you can put away in a
401k that’s buying you less and less in
terms of shares or in real estate you
might say you’re getting less square
feet if you want to put it that way
you’re just your your bang for your buck
isn’t going anywhere what is
socionomics well U one day I was in
working in maril Lynch and I looked up
at the wall chart and I had been a
musician and I began to think about the
change in the tenor and tone of music
that occurred around
1965 and um it was you know pretty much
joyous and happy and that sort of thing
up till that time from from the late 50s
right into 1964 and 65 and then it
started getting a little edgy and you
know after that you you got into heavy
metal and there was punk rock and all
that sort of stuff in the 70s and um I
said you know I wonder if there’s a
correlation here well long story short
that led to a theory of mine which is
that
uh human beings in society uh experience
waves of social
mood and so I finally had sort of an
understanding of why there are such
things as Elliot waves in the stock
market I think human moods when they’re
colle in a collective and people are
talking to each other and sharing
experiences and and sharing their
emotions and everything else uh creates
a social mood overall that fluctuates in
this fractal pattern so what do people
do when their mood changes their
behavior changes and they start acting
to express the mood as they get more
optimistic they’ll do several things
they’ll buy more stocks so that’s why
why you see the waves in the stock
market uh they’ll also expand their
businesses a little bit perhaps or take
a few more gambles out there in business
and that’s why business follows the
stock market it’s stock market’s a
leading indicator of the economy for
that reason it takes a while once you
make a decision to do something business
wise that that works out and then uh
they also do some other things they they
write and play and buy happier music uh
they go to different kinds of movies in
bare markets so horror movies I found
out tended to be very popular in periods
of negative social mood such as really
yeah 1930s the early 40s uh back again
in the in the 70s from the very late 60s
through the 70s into the early 80s was a
big uh period for horror movies so you
find it in all walks of life we found
some 40 40 some different uh data series
that correlated with the stock market
because they’re all reflecting changes
in social mood so I wrote an 800 page
book eventually took me a while to
codify all this into a theory um and
it’s called the socionomic theory of
Finance I had written four other books
on socionomics prior to that talking
about cultural changes and things but I
realized that this idea is a whole
different Paradigm from
standard economics now I think economics
is a valid uh field when it comes to
microeconomics but I think uh waves of
social mood explain changes in the macro
better yeah big positive mood gives you
an expanding economy negative mood gives
you a Contracting economy it with with a
lag for the reason we just discussed um
and also their idea of Finance is wrong
they try to claim that prices go up and
down due to supply and demand and I have
numerous chapters explaining why that’s
it’s completely different in finance
there’s no such thing as supply and
demand there are only uh speculators on
both sides and the guy who buys at at
noon could be a seller at one o’clock so
you don’t have a separate group
ofers and consumers
um you know acting in their roles they
can play they’re playing the same role
speculating all the time and because
there are no
constraints uh on how people feel and
what their moods is the market is
dynamic and you notice the economic
Market is not Dynamic the price of a
hammer on Thursday is the same it’s
going to be next week pretty much with
long-term you know changes in inflation
affecting it but that’s it uh in the in
the financial markets dynamis is the
everyday occurrence it’s a completely
different world and economists don’t
understand that that makes a lot of
sense to me in in that uh Finance is
man-made not Nature Made um I suppose we
could study you know the we could go to
the serengetti and look at resources and
people that fight over them but I often
sit out by my waterfall and I’ll I’ll
look at a little bit of Nature and
especially during Co I’d look I have
these two red foxes that go through my
property and I think those two things
they don’t even know CO’s going on right
now you know they don’t even know and so
it would it would make sense that since
you know things like money are man-made
you know the fed and what you like to
call the units which I would agree of
whatever it is units of debt or good
faith um that this is man-made and that
man’s moods and
thoughts it I feel old now because I
sound like my parents finally it took a
long time
but I say wow what a time we live in you
know my my father used to think you know
things were going to hell in a hand
basket I think it’s fascinating time to
be alive uh with social media
AI uh artificial intelligence I mean
it’s it’s a fun time to be alive just to
grab your popcorn and watch the movie so
pick up Elway principle key to Market
Behavior if you uh want to sharpen your
technical analysis skills pick I I
really am excited I have not not I’ll
confess I have not read a last chance to
conquer the crash and so that’s one that
I really care about because I really
believe that there’s assets that benefit
from inflation assets that benefit from
deflation and if you put those in your
balance sheet in the right order you can
benefit regardless of what happens and
then uh pick up socionomic theory of
Finance uh fascinating work uh by Robert
pror fascinating stuff um last thing on
uh I often as an education Advocate I
wound up Landing I wind up Landing the
same place often on a podcast what is
your feeling on financial
education in the general populace uh in
the electorate you know there’s skills
for hire if I go to the dentist I’m
having him do the root canal not me I
don’t how how to do that myself uh
delivering a baby I’m sure people have
done that out of expediency but I’d
rather have a midwife at a minimum if
not a full-on hospital for my wife uh to
have a baby is financial literacy is
this something we hire out to Wall
Street or is this a life skill and what
is the place and role of uh Financial
education right now as you see it it’s
definitely a life skill however I must
admit to being somewhat of a cynic on
how much better your life will be if you
get involved in financial markets and
and how smart the smart people really
are you know uh that the Swiss Central
Bank holds billions of dollars worth of
stocks in the S&P 500 a third of their
uh stock portfolio reflects the top
third capitalization waiting in the S&P
now these are people who presumably have
studied Finance all their lives and the
best they can come up with is to buy the
is to do is to do what the Market’s
going to do anyway with no education
right is that what you’re saying yeah
it’s pitiful so you have to not only
study markets but you have to be a
Maverick you have to be an independent
thinker and if you go to a normal
advisor they will tell you yeah you
should be 60% stocks and and 30% bonds
and 10% cash and when they’re really
excited they’ll tell you you need to be
80% stocks and that sort of thing but
but uh stock Pickers have have gone away
except per perhaps for you because
you’re an income guy and you’re looking
at that sort of thing um it these are
law skills that were around when I was
young and entering the business
everybody was you know looking at things
like that but now everybody is just an
index person so yeah you learn a lot do
it on your own uh be skeptical of of
everything um and anybody who’s offering
some education take it just don’t assume
it’s gospel and then includes you know
whatever I teach people about what I
think markets are about make up your
own agreed there’s a big difference that
people hard they have a hard time
delineating uh education from advice and
people often you know there’s different
questions I get the ones I hate are well
FY if you had $10,000 what would you buy
right now or is gold good you know stuff
like that but if they say hey let’s talk
about gold being fungible okay well now
we’re learning something right now we’re
learning something you’re absolutely
right people come up to me at
conferences and say you know you have
you got a tip and I said yeah I said
what is it I said don’t get involved in
the markets and they would what do you
mean I mean you’re in the business you
don’t know what you’re doing well yeah
and and I barely know what I’m doing
because the markets are are sometimes
overwhelming in the way the herd behaves
and it takes it to ridiculous Extremes
in both directions um and and they said
well well then what would you do and I’d
say frankly start a business and you
know make money and put it in very safe
places well it’s interesting you say
that because I couldn’t give advice
because the things I like the things I
do excuse me my mom can’t do right um it
it’d be like saying what do you think
Andy how how should you get to Hawaii
they say well get behind the cockpit of
747 and drive it well if you don’t know
how to do that that advice is is
meaningless so one wonderful uh
conversation I hope I can uh have you
back when the the paper’s done because
that will be a
fascinating uh publish when you publish
that and that’ll be reviewed I suppose
and the whole bit so that’ll be awesome
hope so and maybe you could have my son
whose name happens to be Elliott uh
really Elliot pror yeah when it’s all
done he’s a he’s a good interview so you
might want to talk to him and before we
go I have one thing I want to say to
your uh listeners viewers um my my
marketing arm said it was very excited
that okay we’re going to do this podcast
with Andy Tanner and so can we create a
landing page and I said sure oh yeah
absolutely put it out there we we we
sell conquer the crash for $99 but I
think they’ve set up a landing page
where it’s a whole lot cheaper than that
uh for a short period of time and also
uh some links to subscri you know thing
subscriptions with with special deals
for your people so all they have to do
is go to Elliot wave.com
Andy oh awesome Elliott with two L’s and
two T’s wave like on the ocean.com Andy
and and fantastic well we we appreciate
that uh that generosity and that gift to
our listeners because uh one thing I
know about the people that follow us we
care about learning a lot so that’s
fantastic we’ll have that put in the
show notes as well uh particularly on
the YouTube channel so they can uh they
can take advantage of of uh of that
offer fantastic stuff uh Robert pror
hang on just a bit so I can properly
thank you after I close the show you’ve
been listening and watching the cash
flow Academy podcast this is where we do
our best to make things simple hope we
helped you advance your thinking and
gave you some food for thought about
learning uh in terms of ell wave theory
in terms of deflationary defense and how
the psychology of of each generation
affects the markets we’ll see you next
time this podcast is a presentation of
richdad media Network

In this episode of the Cashflow Academy podcast, host Andy Tanner interviews Robert Prechter, a renowned author, and expert in financial markets, where they discuss investment overvaluations, Elliott Wave Theory, and strategies for surviving in deflationary depressions.

Prechter shares his journey from a psychology graduate to a pioneer in technical analysis, emphasizing the crucial role of independent thinking in navigating the financial markets. Tanner and Prechter dissect the nuances of market behaviors, the impact of social mood on economic trends, and the potential for leveraging treasury bills and precious metals in uncertain times.

Special Offer for CashFlow Academy Viewers: https://bit.ly/3vVXXGs

00:00 Introduction
02:02 Robert Prechter’s Journey: From Music to Market Analysis
07:13 Exploring the Elliott Wave Theory
12:17 Understanding Deflationary Forces and the Fed’s Role
18:38 Investment Strategies in Overblown Markets
22:41 Socionomics: The Intersection of Social Mood and Markets
28:57 The Importance of Financial Education and Independent Thinking
33:25 Special Offers for Listeners and Closing Thoughts

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Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.

The content presented here is based on the speaker’s personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.