Robert Prechter, author of the Elliott Wave Theorist, “At the crest of the tidal wave” and possibly the most bearish man on the planet, says to cover short positions. Prechter has been very accurate about the unfolding of the global credit crisis though his timing has not been perfect. Prechter was very bearish in the 90’s and remained so throughout the 2003-2007 bull. Although he likely performed well in 2008 my guess is that his long-term track record is very poor.
But for what it’s worth he is seemingly less bearish than he once was….