Fear and uncertainty that drive a severe bear market are the
same emotions which can set the stage for authoritarianism,
in most any nation.
“Bear markets of sufficient size appear to bring about a desire to
slaughter groups of successful people. In 1793-1794, radical Frenchmen guillotined
countless members of high society. In the 1930s, Stalin slaughtered Ukrainians.
In the 1940s, Nazis slaughtered Jews. In the 1970s, Communists in Cambodia
and China slaughtered the affluent. In 1998, after their country’s financial
collapse, Indonesians went on a rampage and slaughtered Chinese merchants.” –
Bob Prechter, Wave
Principle of Human Social Behavior, p. 270
Why do authoritarian tendencies emerge only during bear markets
in stocks?
“As society becomes more fearful, many individuals
yearn for the safety and order promised by strong, controlling
leaders.” – The Socionomist, May 2010
Learn
How to Anticipate and Prepare for Political Conflict and War,
Bull Markets and Bear Markets. The 118-page Independent
Investor eBook covers a vast array of investment topics and exposes
myths that mainstream investors accept as fact. Once you learn
the real cause of conflict and war, you might be surprised how
the stock market plays a key role in forecasting major social
events. Click
here to download the 118-page Independent Investor eBook for
FREE
Bob Prechter’s new science of socionomics explains that stock
market fluctuations mirror trends in people’s collective mood.
In simple terms, when the market is buoyant, it indicates positive
social mood; the opposite when a bear market takes over.
The fascinating part is that because the stock market and social
mood trend closely together, a forecaster can apply Elliott wave
analysis to both — and predict both.
Generally, widespread brutalities and wars do not follow the first
phase of a bear market. Extreme violence, when it does
occur, often follows the worst part of the market’s
downturn — like the end of the Great Depression, a negative
social mood period that ultimately ushered in World War II.
But even during the first phase, a negative social mood grows.
So, if a forecaster determines correctly where in the wave structure
social mood resides, he can make educated forecasts about what
will follow in society — given what has happened before under
similar social mood trends.
Authoritarianism is a subject of heated discussions these days,
which makes it a timely topic for a socionomic study. The latest,
two-part issue of the monthly Socionomist gives
you just that: A look at historic trends and specific
forecasts for the years ahead.
Learn
How to Anticipate and Prepare for Political Conflict and War,
Bull Markets and Bear Markets. The 118-page Independent
Investor eBook covers a vast array of investment topics and exposes
myths that mainstream investors accept as fact. Once you learn
the real cause of conflict and war, you might be surprised how
the stock market plays a key role in forecasting major social
events. Click
here to download the 118-page Independent Investor eBook for
FREE
This article was syndicated by Elliott Wave International.
EWI is the world’s largest market forecasting firm. Its staff
of full-time analysts lead by Chartered Market Technician Robert
Prechter provides 24-hour-a-day market analysis to institutional
and private investors around the world.
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
