Prechter, the famed market forecaster who specializes in Elliott wave analysis, sent similar warnings about the Nasdaq in 2000, real estate in 2006, the blue chips in 2007 and commodities in 2008. His forecasts proved deadly accurate.
Why worry about the safety of bonds, you ask? A recent USA Today article reported that investors put a "record-shattering" net $376 billion into bond mutual funds in 2009, and individual investors and mutual funds are "still showing the love" in 2010.
Robert Prechter wrote this in his September 2010 Elliott Wave Theorist:
Many commentators have noted that the public has withdrawn some money from stock mutual funds in order to buy bonds. If people were pouring into Treasury bonds, it would be a bullish sign, because it would reflect waxing conservatism. But most investors are not hiding in Treasuries; they are chasing yield! To that end, they are shunning Treasuries to invest in high-yield money market funds and bond funds, which hold less-than-pristine corporate and municipal debt.
If your hard-earned savings are exposed to the developing risks in these markets, you owe it to yourself to heed Prechter's urgent warning.