EW I like as a theory, and even find usefull on occasion, and some of Prechter's own ideas are also interesting, but following his trading advice?


Newsletter tracker Mark Hulbert has been documenting Prechter's investment trading predictions and picks since 1985 so he now has a nearly 25 year long track record which can tell us whether you should trade on his predictions or not.

Here's how Prechter's trading advice has done from 1/1/85 through 5/31/09 versus the broad U.S. stock market average (Wilshire 5000 index) according to Hulbert's analysis:

Annualized Return:

  • Wilshire 5000 Index + 9.7 percent
  • Prechter's Trading Advice -15.4 percent

Total Return:

  • Wilshire 5000 Index + 857.1 percent
  • Prechter's Trading Advice - 98.3 percent

The underperformance of Prechter's newsletter is nothing short of astonishing and stunning! On an annualized basis, Prechter has underperformed the broad U.S. stock market Wilshire 5000 index by a whopping 25 percent per year! Here's what Hulbert's analysis shows would have happened to $100,000 invested according to Prechter's investing trading advice versus the Wilshire 5000 U.S. stock market index:

$100,000 Invested (1/1/85-5/31/09):

  • Wilshire 5000 Index $957,100
  • Prechter's Trading Advice $1,700