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?

http://www.erictyson.com/articles/20090616

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