By Bob Stokes
5/2/2012 4:30:00 PM
What a way to kick off May: the Dow Industrials close at a four-year high and three icons of the 1990s bull market basically say we've only just begun. Is investor psychology too optimistic?...
Filed Under: Dow Industrials, Elliott wave, financial forecast, herding, investor psychology, market forecasts, monetary policy
Category: Stocks
By Bob Stokes
4/26/2012 4:45:00 PM
The stock market: one week it acts like Dr. Jekyll, the next week it's Mr. Hyde. What do we make of these dramatic fluctuations?...
Filed Under: Bear market, Efficient Market Hypothesis (EMH), Elliott wave, herding, investor psychology, market crash, market forecasts, Nasdaq Composite, risk management, Robert Prechter, U.S. STOCK MARKET, volatility
Category: Stocks
By Bob Stokes
4/11/2012 5:45:00 PM
When it comes to financial markets, most allow others to do their thinking for them. You've heard the phrase "the blind following the blind." Yes, they both fall into the ditch. At Elliott Wave International, our mission is to keep our subscribers out of the ditch. To do so, we must first...
Filed Under: Elliott wave, herding, Robert Prechter, Wall Street
Category: Classic Prechter
The World Has Suddenly Surrendered to Mass Optimism. Should You?
History shows that at market extremes many of the most opinioned bears and bulls surrender to popular opinion. The market then moves violently AGAINST popular opinion.
By Editorial Staff
4/6/2012 12:15:00 PM
Consider this. A week after the Dow's all-time high in October 2007, Robert Prechter went on Bloomberg to describe "extremes that exceed 1929 or 1987...these are the harbingers of a change to the downside for the stock market." A week before the major low in March 2009, he went on CNBC to say "it's getting crowded on the bear side...we've been in a short position for a long time, I recommended that people get out of it." S&P futures traders were a record 98% bears (only 2% bulls) on the very day of the low Prechter went on TV to call for a major turn to the upside. In other words, people were telling you to sell at the worst possible time. What about now? Here's what WE think.
Filed Under: Bear market, Bob Prechter, bull market, Elliott wave, Elliott Wave Principle, Elliott Wave Theorist, Elliott Wave trading, herding, market crash, market forecasts, prechter, quantitative easing, Robert Prechter, S&P 500, stock indexes, stock market cycles, the fed
Category: Stocks
By Bob Stokes
4/2/2012 5:00:00 PM
Human beings have a tendency to follow. And nowhere is that tendency more pronounced than in financial markets where so many investors look to others for clues. Those who follow the bullish crowd now will likely be led into rough financial waters. Learn why our analysts have remained independent from the crowd...
Filed Under: Elliott wave, Fibonacci, herding, Robert Prechter, sentiment, stock indexes
Category: Stocks
Bubble, Bubble: Stocks in Trouble?
400 years of history show: AFTER a mania, prices fall lower than they were BEFORE it
By Bob Stokes
3/21/2012 4:00:00 PM
It's easy to say you'll get out before the bubble bursts -- but there's always someone saying "stocks have more to run," or "this pullback is healthy for stocks"... in other words, "tulips are headed even higher"...
Filed Under: Bear market, CNBC, deflation, herding, history, mania, market crash, Robert Prechter, sentiment, stock indexes, technical indicators
Category: Stocks
By Bob Stokes
3/9/2012 5:45:00 PM
Excitement over Apple shares has coincided with a stock market rally that just turned three years old. And some say that this rally leader could reach $1,000 a share. What does our analysis reveal about "Applemania"?...
Filed Under: herding, investor psychology, Short Term Update, steve jobs, Traders
Category: Stocks
Socionomics at the University Level
Professor Terry Burnham discusses his inclusion of socionomic concepts at Chapman
By Jill Noble
3/2/2012 9:00:00 AM
Hear Dr. Burnham (who will speak at the April 14 Socionomics Summit) explain his take on the "cruel trick of nature -- that our brains, which are great in so many areas of life, lead us to poverty and frustration in financial markets."
Filed Under: Elliott Wave Education, herding, Robert Prechter, social mood, socionomics, socionomics summit
Category: Socionomics
By Bob Stokes
3/1/2012 5:00:00 PM
Have too many people been extrapolating the market's recent rally? Robert Prechter recalls the words of his former boss, which are fitting for today...
Filed Under: Bob Prechter, Elliott Wave Theorist, herding, sentiment
Category: Stocks
By Bob Stokes
2/6/2012 2:30:00 PM
A bullish consensus appears to be crystallizing. But that doesn't mean one should take a contrarian view for its own sake. One must look at the entire market picture, and ask, "Where are we in the market's main trend?" and "What are other indicators revealing?" We've asked and answered those questions...
Filed Under: bull market, Elliott Wave Theorist, financial forecast, herding, investor psychology, sentiment, Short Term Update
Category: Stocks
By Nico Isaac
2/3/2012 5:00:00 PM
On February 1, Facebook revealed plans to raise $5 billion in the biggest internet initial public offering ever. Soon after, the vast majority of Facebook's 845 million users clicked "like" on the soon-to-be IPO's wall post. So, the big question remains: Does this salvo of social networking and micro-blogging sites really have a new "face"? One, for that matter, that won't turn into a sad, frowning emoticon from another tech boom gone bust?
Filed Under: Bob Prechter, Elliott Wave Theorist, hedge funds, herding, mutual funds, prechter, S&P 500
Category: Stocks
By Bob Stokes
1/30/2012 5:15:00 PM
Our Elliott wave analysis strongly suggests that the markets and economy are at rare historical junctures. Read what Robert Prechter recently said...
Filed Under: 1929 Stock Market Crash, deflation, Efficient Market Hypothesis (EMH), Elliott wave, herding, history, market forecasts, Random Walk Theory, Robert Prechter, social mood
Category: Stocks
By Jill Noble
11/3/2011 5:00:00 PM
In DVD footage from the 2011 Socionomics Summit, Robert Prechter gives the following example of how “herding” among mutual fund shareholders can cause deep harm, even when the fund itself is successful.
Filed Under: hedge funds, herding, Robert Prechter, socionomics, socionomics summit, video
Category: Socionomics
By Bob Stokes
10/18/2011 4:15:00 PM
Some expert appears on TV with a fancy title under his name. He must know about the market. But the 2007-2009 financial crisis revealed once again just how often the Wall Street crowd is wrong. How about now?...
Filed Under: herding, investor psychology, Prechter's Perspective, Robert Prechter, U.S. STOCK MARKET
Category: Stocks
By Jill Noble
10/6/2011 5:15:00 PM
In this clip from his presentation at the London School of Economics, Bob Prechter discusses neurobiology and the biological impulses that make "rational self-interest" so difficult.
Filed Under: herding, history, personal finance, Robert Prechter, Robert Prechter, volatility
Category: Classic Prechter
Critical Thinking—Is It the Answer to Investor Woes?
EWI's free Independent Investor eBook shows you how conventional methods of understanding the markets can hugely impede your investment success
By Andrea Dibben
9/22/2011 12:15:00 PM
“Critical thinking” -- a.k.a. thinking for yourself -- is the pinnacle of a good education.
But even though you realize it's important to think for yourself, as time goes by you find yourself going with the majority. Not rocking the boat is a safer bet. You come to believe you just might live longer.
Filed Under: herding, investment decisions, personal finance
Category: Classic Prechter
Where Should You Be in a Fast-Moving Market?
Hint: Avoid the herd. Be independent. Move at your own pace with our expert market mentors.
By Jill Noble
8/23/2011 11:15:00 AM
As markets swing wildly, there's never been a more important time to hone your trading skills. And the Wave Principle (and supporting technical tools) can indeed help you avoid pitfalls and identify unique opportunities.
Filed Under: Elliott Wave Principle, Elliott Wave trading, herding, Jeffrey Kennedy, risk management, technical analysis, Traders, volatility, Elliott Wave Principle
Category: U.S. Economy
By Nathaniel Williams
8/12/2011 3:45:00 PM
If many financial "experts" were graded they'd likely get an "F." How can they be so wrong at such critical junctures -- and is it possible to think independently?
Filed Under: Robert Prechter, conquer the crash, Elliott Wave Principle, herding, Robert Prechter, Robert Prechter
Category: Classic Prechter
Why the Herd Cannot Buy Low or Sell High
The June Socionomist reveals why the "wisdom" of crowds does not apply to investing
By Nico Isaac
7/27/2011 5:30:00 PM
In 1907, an Englishman at a county fair observed that a group of independent opinions offers a better estimate than can any single individual in the group. Fast forward one century, and this idea grew into the theme of a popular book with a really long title: "The Wisdom of Crowds: Why the Many are Smarter than the Few and How Collective Wisdom Shapes Business, Economies, Societies, and Nations."
Filed Under: Robert Prechter, Daily Sentiment Index (DSI), herding, Robert Prechter, socionomics, wisdom of crowds
Category: Socionomics
Are Crowds Wise -- Or Mad?
New Research Reveals the Sources and Threat of Herding
By Nathaniel Williams
7/5/2011 5:15:00 PM
For more than 100 years, social science has claimed that a group of people is smarter than its individuals. The idea is known as the "wisdom of crowd effect." Yet observation shows that crowds often make very un-wise decisions. Now, new research shows you why...
Filed Under: cultural trends, herding, social mood, The Socionomist
Category: Socionomics