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Elliott Wave Analyst: European Stocks Will Plummet More Than 50%; Euro Doomed

Fin - Daily Ticker - US

European markets are rebounding today after French President Nicolas Sarkozy hinted at a deal to resolve the Greek debt crisis. Speaking after meeting with German Chancellor Angela Merkel Sarkozy noted France and Germany stand together on a solution for Greece.

After several days of worries, this appears to have done the trick and turned the tide... for now.

However, the folks at Elliott Wave International rarely have a sunny outlook on life. This Daily Ticker guest, European analyst Brian Whitmer, is no exception.

In an interview conducted before this latest news, Whitmer gave his longer term outlook on the European debt crisis. As you can imagine, he thinks it won't end well. According to his analysis Europe is now entering the next phase of the bear market that first clobbered global stocks three years ago. Over the next 6 months, Whitmer thinks, the European debt crisis will spread from the "fringe"--Greece, Ireland, et al--to the "core" major European countries like France. Whitmer thinks that this new crisis will crush European stocks, taking them down more than 50% over the next couple of years. He's also predicting the euro won't be able to survive the crisis in its current form.

Many Americans have tuned out the European situation, believing that it is safely insulated from our own lousy economy. Not so, says Brian Whitmer. The dollar is poised to do better than the Euro for several years, but US stocks won't be immune.

So what should investors do?

Buy "safe currencies" and "safe short-term bonds," says Whitmer. Such as Swiss Francs and short-term Europe debt.

And then hang on to your hat!