Dump Your Debt And Horde Cash Before The Next Down Cycle

Robert Prechter, is the well-known author of Elliot Wave Principle and other best-selling investment strategy books. While not supported by every investment guru, has a huge following because he has been correct in many of his predictions which rely largely on science as well as observation and make so much sense. He does not predict actual stocks but he does predict the direction of the stock market and the economy. His theories have been tested and there is much support for his predictions.

Prechter has been warning us that another massive downturn is in the making. When? Within a few years, though it is very difficult to pinpoint the date. He says it will happen and you must prepare for it as this large correction will occur and the economy will be in turmoil for a year or so afterwards before it stabilizes again and rebuilds itself. Any uptick now is merely window dressing for the real downturn. The downturn we have just experienced is a warm-up for the main event.

Many, many major large and small businesses will go out of business. Banks will go out of business, insurance companies will be victims and the stock market will plummet. Bonds will go into default, dividends will cease to be distributed and the economy will grind to a stop. This will be global as the economies of the world are very intertwined. Our currency and economy will emerge better for it as we will be then be rid of the enormous unsupportable debt we are currently embracing.

The action we should be taking? Get out of the stock market and into safer investments – the safer the better. Cash may once again be king. Rid yourself of debt; debt will kill those unable to support it when revenues plummet again. For businesses, this means do the debt workout now. Once done, you can weather any storm. Without it, you will face unsupportable payments. Even if you are doing well today, tomorrow you will be in trouble if you are carrying debt.

Do your workout, you will need it soon. You have time, but not much. If he is right, you will bless the day you paid attention. If he is wrong, you will still bless the day you paid attention as there is no downside to ridding yourself of debt.