Professor Elam

The rubber ball bounce from 666 to 1000 in the S & P has encouraged small investors. 

Elliott Wave Theory suggests that this move up was merely a Wave Two of a Five Wave Pattern. The more devastating Wave Three is yet to begin. 

So far the S & P drooped from 1500 to 666

Then rebounded from 666 to 1000. It may move up another 100-200 points buoying confidence further. 

But sometime this winter I suspect we top out and head down in a third wave. That should go lower than the previous 666.

this is what happened after 1929. The markets rebounded causing investors to think the worst had passed. 

Then the real devastation occurred. The Dow finally stopped at 41, having lost 90% of its value from the 1929 top at 390. 

I am asking some of you to write reports on the REITs brokers and banks reflecting how much the loss has been and whether they can recover. Historic precedent should help in your evaluation.