Astrologer Arch Crawford targets mid-November for crash

Followers of financial astrology were first dazzled by arch Crawford in early August when his awesomely gloomy prediction coincided with a massive solar flare and the worst August for stocks in a decade (see this article).

But since then the market has rallied again and Crawford’s August to October crash warning has been ridiculed as nonsense. However, he could still have the last laugh and wipe the smile off the faces of his critics.

Mars-Uranus crash cycle

An astrologer who reads ArabianMoney sent us this comment today: ‘If you go to Crawford’s website you find a PDF file on the Mars-Uranus crash cycle which has a historical chart of this cycle. Arguably the most devastating part of the Mars-Uranus crash cycle occurs 75 degrees after the 180 degree opposition which occurs MID NOVEMBER 2010′.

No doubt some readers will fall off their seats laughing. However, Arch Crawford is noted for his exceptionally accurate market timing. He is not alone.

Dr Marc Faber told Bloomberg last week he expected the market to be disappointed with the quantitative easing program of the Fed this week and to undergo an overdue correction. Marc Faber correctly called the 1987 and 2008 market crashes, and is rated the fifth wisest investor in the world according to a recent Bloomberg poll.

And whether or not you believe that the future is all in the stars, it is always wise to pay attention to star forecasters. In financial forecasting this is usually a contrarian view of markets that in retrospect appears pretty obvious.

Laughable rally?

For financial markets to rally while the US in particular remains locked in a deep economic slump with auto sales at two-thirds pre-crisis levels, real estate prices deeply discounted and unemployment close to 10 per cent and stuck there, is to predict a recovery. Where is it? And how long is this going to take?

Quite obviously a lot of the cheap money created to offset the crisis has inflated stock prices way beyond reality and this money must now be destroyed if that reality is not happening. But more dangerously there is also a massive bubble in the bond market that will add a currency crisis to this toxic market cocktail.

Arch Crawford may yet be remembered as the guy who got it right again rather than a whacky astrologer way off course.