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The Silent Crashand What Happens Next

The Elliott Wave TheoristThe Elliott Wave TheoristDecember 15, 2006 issueDecember 15, 2006 issue

Robert R. Prechter, J r., CMT

www.elliottwave.com

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www.elliottwave.com Figure 1

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www.elliottwave.com Figure 2

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www.elliottwave.com Figure 3

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www.elliottwave.com Figure 4

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www.elliottwave.com Figure 5

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www.elliottwave.com Figure 7

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www.elliottwave.com Figure 8

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www.elliottwave.com Figure 9

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www.elliottwave.com Figure 10

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www.elliottwave.com Figure 11

Real Estate Is Crashing Too:

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www.elliottwave.com Figure 12

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www.elliottwave.com Figure 13

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www.elliottwave.com Figure 14

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www.elliottwave.com Figure 15

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www.elliottwave.com Figure 16

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www.elliottwave.com Figure 17

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www.elliottwave.com Figure 18

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www.elliottwave.com Figure 19

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www.elliottwave.com Figure 20

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www.elliottwave.com Figure 21

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www.elliottwave.com Figure 22

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www.elliottwave.com Figure 23

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www.elliottwave.com Figure 24

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www.elliottwave.com Figure 25

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www.elliottwave.com Figure 26

ug. 192981.4%

Sep. 197433.7%

Apr. 194216.0%

Nov. 196877.8%

Dec. 197278.1%

J ul. 198233.5%

Mar. 2000183.0%

average = 55.79

120.53%$15.903

$13.914

STOCK MARKET CAPITALIZATIONAS A PERCENTAGE OF NOMINAL GDP

ast (J une 2006)tock Market Capitalization = Trillionominal GDP = Trillion

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www.elliottwave.com Figure 27

Stock Mutual Funds Cash/Assets Ratio vs. Aggregate Stock PricesMonthly Data December 1965 - October 2005 (Log Scale )

S&P 500

High Cash

Low Cash

3.9% 4.5% 4.0% 3.8%

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www.elliottwave.com Figure 28

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www.elliottwave.com Figure 29

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www.elliottwave.com Figure 30

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www.elliottwave.com Figure 31

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www.elliottwave.com Figure 32

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www.elliottwave.com Figure 33

1

2

3

4

5

a

BEST COUNTFOR DJIA

DJIA monthlylog scale

IV

V

p a r a l l e

l c h a

n n e l

b

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www.elliottwave.com Figure 34

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www.elliottwave.com Figure 35

BOND BUYER 20-BOND AVERAGEarithmetic scale

inflationlow

(1981)

investment mania top?

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www.elliottwave.com Figure 36

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www.elliottwave.com Figure 37

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