Volatile swings in stocks have people pointing fingers. Is it the Fed, partisan politics – or, simply irrational fears, as many pundits say?
The irony is, markets are labeled “too emotional” only when stocks fall. A rally is almost always “rational.” Clearly, this point of view is internally inconsistent. Socionomic theory is consistent in saying that the market is always non-rational. Robert Prechter’s Socionomic Theory of Finance is not another book updating the age-old observation that investors are emotional; it is a book about the origin of those emotions – and their predictable patterns.
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.