The new science of Socionomics is founded by Robert Prechter in 1979. He postulated that social mood drives financial, macroeconomic and political behavior, in contrast to the conventional understanding that such events drive social mood.

Negative Social Mood, Pegida’s Best Friend

“Fears are growing in Germany of a far-Right resurgence stoked by the refugee crisis, after nearly 20,000 took to the streets of Dresden in the biggest rally by the Pegida anti-immigrant movement for months.” – The Telegraph One of the speakers at the rally actually expressed regret that “the concentration camps are out of action”.…

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Even Apple has Socionomic Problems

In 1940s, Edward R. Dewey hypothesized, that the tallest buildings are usually completed after significant market peaks. Now, 74 years later, this hypothesis is a good addition to the socionomic theory. The new science of Socionomics, founded by Robert Prechter Jr. in 1979, postulates that social mood drives financial, macroeconomic, political and social behavior, in…

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What do Ferguson and Iraq have in common?

Have you been watching the news recently? If yes, then you have probably heard about the riots in Ferguson and the US airstrikes against the extremist Islamic State in Iraq and Syria (ISIS). But what do these two conflict zones have in common? And what does the Market have to do with it? The riots in…

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Is another Arab Spring lurking ahead?

Is another Arab Spring lurking ahead?

The Arab Spring is a wave of revolutions, demonstrations and civil conflicts, which struck mainly Tunisia, Egypt, Libya, Yemen and Syria during 2010 – 2013. Mostly, people were angry with decades of dictatorship and the violation of basic human rights. Many leaders had been forced from power. Egypt’s Hosni Mubarak, who held office for almost…

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The World Cup, The Riots, The Market

The World Cup, The Riots, The Market

If you are a football fan, probably you have been waiting for June 2014 since July 2010. And probably you are worried, that the riots in Brazil may ruin the World Cup. The news on all the media is getting from bad to worse as the rebellion is getting more and more severe with each…

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Cannabis indicator and what it means

Cannabis indicator and what it means

Socionomics is the science of social prediction. By investigating social mood, reflected graphically on the financial markets, socionomists try to predict social behavior. Social mood is also reflected in different fields like politics, culture, construction and many others. We can use those indicators to determine the trend of social mood, and what is more important…

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Financial myths and Socionomics

Often we hear on the news how the big institutions like the European Central Bank, Federal Reserve and so on are making reforms and changing the market so the economy could get healthier and boost its growth. According to the world’s conspiracy theories, the world’s biggest families like the Rothschild, Rockefeller and Morgan or Illuminati…

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Hitler’s popularity is rising. Why?

On May 2nd 2014, “The Telegraph” published an article titled “Germany’s interest in Adolf Hitler at record levels”. Excerpts from it are given below. “Germans are more interested in Adolf Hitler than at any time since the end of the Second World War, a new study has concluded.” “The German Media Control research group, which…

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Pharrell is “Happy”. What about the Market?

Pharrell is “Happy”. What about the Market?

Music is an art form, which reflects different types of emotions through its melody and lyrics, which have their mission to express and recreate the emotional state of the author. Therefore the public listens to music, which reflects its emotional state. Lately there has been a song, which has made the world dance and move…

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Investing change in stocks?

Investing change in stocks?

Do you think that investing change in stocks is a good idea? Optimism has reached historical proportions and is reflected in numerous actions and events (massive buildings, movies, music and so on).History shows us, when everyone is involved in stocks, little upside potential remains. Another peak of optimism is reflected in a new app. “Acorn”…

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Did we need a war in order to predict this? Russia

Did we need a war in order to predict this? Russia

Tension between Ukraine and Russia has been rising for several weeks. Everyday you can hear all the media saying how the conflict is bringing the Russian stock market down. But did we need a war in order to predict this decline? Well, if we were fundamental analysts, the answer would have been undoubtedly “yes”. But…

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Socionomics perspective on skyscrapers

Socionomics perspective on skyscrapers

In 1940s, Edward R. Dewey hypothesized, that the tallest buildings are usually completed after significant market peaks. Now, 74 years later, this hypothesis is a good addition to the socionomic theory. The new science of Socionomics, founded by Robert Prechter Jr. in 1979, postulates that social mood drives financial, macroeconomic, political and social behavior, in…

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Socionomics perspective on prohibitions

Socionomics perspective on prohibitions

Positive social mood drives prohibitions of substances such as alcohol and marijuana. Negative social mood drives tolerance and relaxed regulation. Tolerance increased during the bear market of the 1970s, then decreased for 20 years during the bull market. The numbers began to decline sharply following the peak of the broad Value Line index of stocks in…

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Socionomics perspective on music

Socionomics perspective on music

Music reflects feelings, mood and trends. The first chart shows a stock market cycle (1950-1982) and the styles of music that were popular in the uptrend vs. the downtrend. In the 1950s and early 1960s, as the great bull market was underway, major pop music stars were young and energetic and their lyrical theme had…

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Hollywood predicts stock market crashes?

Hollywood predicts stock market crashes?

Some may call it coincidence, but from Elliott Wave perspective it is just another sign of extreme optimism in the market. When big Hollywood productions about Wall Street are released, devastating stock market crashes follow. The first chart below shows our long term forecast on DJIA. On the second one you can see where the…

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