Tomorrow it is likely that the market will fall. There I have said it, perhaps for those who don’t believe me I should be more assertive, delete likely, and say the market WILL fall and apart from the battle hardened amongst you it may cause a slight twitch of the sphincter valve. Others will see it as an opportunity to buy more and that might be a good thing to do but not yet.
Let me explain--- but before I do lets go back to 1972, I had received my copy of Bob Beckman’s analysis of the markets, it was as usual fifteen pages of small type. This was no ordinary pedlar of wealth, he had a spot on Radio London and was revered for something or other. I was desperate to emulate the heroes of the investment world, well about half a dozen heroes, no one told me about the thousands of none heroes who had gone before and struggled to make money from people such as Bob. A light bulb has just illuminated--- is that the same Bob I read about yesterday on another thread, the Bob who bought at the top of every market and still made millions”?
Bob convinced me that he knew what he was talking about and so I borrowed £5000 and bought the shares that were sure winners. I can’t remember if I had time to catch breath before the markets started to fall and didn’t stop until the FT 30 index ( the forerunner of the FTSE 100 ) was 75% down. And all this because Sheikh Yamani had increased the price of oil from $1.60 a barrel to $5. It took until 1981 for the markets to recover, during this time many high profile figures including Jim Slater were, shall we say, “financially embarrassed”. I wasn’t high profile but I was still financially embarrassed, £5000 was a lot of money, even more so when the bank refused to extend my corporate credit. The Bank Manager told me that the loan was backing me not the company I owned, a life lesson learned.
Beckman introduced me to the Elliot Wave Principle which is absolutely fantastic at predicting the market. In its simplest form it is three legs up and two down, five in all zig zagging to the top. Well I tried and better tried I read the book and bought the tapes, employed a…
