Interesting count. I have mine based upon Glenn Neelys recent modification to his longer term count. He sees the S&P remaining in a wave (IV) correction for the next 10-15 years. I think wave b.(IV) lasts until 2009-2010 before wave c.(IV) kicks in. Gold and the HUI are likely to go parabolic at this point. Should wave b extend further in time, wave c will be 5-6 years down. Inflationary periods are good for the commodities but bad for the S&P. S&P of 1200 ten years out would be like S&P at 400 right now.
imho, it's a myth that ANY inflation is bad for the financial markets.
the last longwave (K-wave) bottomed in 1949... stocks appear to have done pretty well in the initial stages of the mild inflationary climate of a new longwave... however, in the late stages of the uptrend, as in the 70s & early 80s, the financials suffered, then finally when the downtrend started kicking in, with disinflation, and then deflation, the financials, and especially Tech, were able to thrive once again, and hence the Naz bubble.
i believe that the last longwave bottomed in 2003 (54 years), so looking at the commodities starting to take off, but still with relatively low interest rates, i see a similar parallel to the previous longwave uptrend, where the financial markets will continue to be able to move upward (not Techs though) with mild inflation and relatively lower interest rates, until the plateau stage, where both high inflation and high interest rates will likely cause another 1987-style correction.
jmho, and as always, twt.
btw, it's also a myth that a 1929-style financial depression MUST accompany the bottom of the longwave (K-wave).