More Bad Times Ahead?

Today I was seeing an interesting interview with Shankar Sharma on CNBC, he made some interesting comments not all them were comforting, but most of them made lots of sense. . . although his views were connoting extreme bearishness and I hope that things wont be so extreme but none the less he has been the only one who has been able to predict the markets accurately this year. . . 

Some of the main takeouts:

1) COMMODITY CYCLE OVER: some of the heavy weight commodity cos may show long periods of no significant earnings increase or even losses. Hence companies like TISCO, RELIANCE, SAIL might be risky to hold going further

2) NEW HIGHS NOT TO BE REACHED TILL 2-3 years!!!: This one even spooked me. So according to him we might see some rallies here and there but to take out the earlier tops of 2008 begining, would not happen till 2015. . .scary no?

3) MARKETS MIGHT SEE SOME STRONG RALLIES:  There would be some rallies in between that would give the investors a 20% kind of returns from the absolute bottoms. So if you are smart enough to trade there might be some opportunities.

4) BUY ONLY LARGE CAPS IF AT ALL: Stay away from Midcaps completely, trust only the biggest of the names.

5) STAY AWAY FROM EQUITIES: and real estate also. . .

Well this is a gloom scenario, and I earnestly hope that things are not so bad, but if it were then we should be ready for some really tough times. . .