Robert Prechter, president of Elliot Wave International, reportedly predicted the 1987 stock market meltdown.
Now he's warning that we're in a new bear market — and this might be investors' last chance to get out while the Dow is in quadruple digits. Prechter explained his thinking to CNBC.
Prechter offered a thumbnail timeline of recent market drama, pointing to "late February, early March of 2009...We had so many very powerful indicators indicating a bottom. At that very bottom day, the 6th of March, as low as 2 percent of traders were bullish."
That week presented the "kinds of signals" his team takes as proof of a rebound: "We had an upside target of around 10,000 in the Dow — we exceeded that at 10,700."
"But again, we're now seeing a lot of signals that we saw at the top in 2007 — and even at the earlier top in 1999 to 2000."
Prechter also believes that gold and other commodities, as well as corporate bonds, are headed downward.
Why is gold as potentially dangerous as stocks now? Watch the full Prechter interview.
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Disclosure information was not available for Prechter or his company.