Prechter argues there are several themes out there right now that investors, economists, and markets all believe to be true just like they did with interest rates in the 1980s.
- The dollar - everyone is bearish.
- Interest rates - everyone thinks they're going to rise.
- The stock market - everyone is bullish but corporate insiders.
- Inflation expectations - everyone thinks it is going to go higher.
- Economy - everyone is confident in 2011.
- Oil - everyone thinks it is heading higher.
He makes some really valid points. Ignore the principles of 'Madness of crowds' and 'mean reversion' at your own risk.