Bob Prechter is the President of Elliot Wave International. He predicted the crash in 1987 so naturally, when things are looking bleak, he is often a guest on TV.
Prechter believes that “nowhere is safe” in the impending drop that he predicts (except for the US dollar). I disagree with him, but it’s always healthy to listen to dissenting opinions in order to learn.
Maybe Prechter is right, maybe my neighbors-girlfriend’s-brother’s-second-cousin-once-removed is right. If you are an investor or trader, you can put in protective stop orders on your positions so that if there is a strong downward draft in any of the markets, you’ll preserve your equity – which is always the first order of business.
By putting the orders in and leaving them there, you might feel some relief from much of the negative press.
If you are so inclined, you can learn to sell short. By doing so, any downtrend can be profitable, not just market moves to sidestep.