Does Elliott Wave’s Robert Prechter know? Not sure, but either way he raises an interesting question…
Is it social mood that dictates the market’s moves or is social behavior the result of the stock market’s performance?
He talks about that in “Popular Culture and the Stock Market” which was originally published in 1985 but as seen in this recent USAToday article (Nov. 2009) it’s still a hot topic and relevant…
The idea linking culture to stock prices is surprisingly simple: The population essentially goes through mass mood swings that determine not only the types of music we listen to and movies we watch, but also if we want to buy or sell stocks. These emotional booms and busts are followed by corresponding swings on Wall Street.
“The same social elements driving the stock market are driving the gyrations on the dance floor,” says Matt Lampert, research fellow at the Socionomics Institute, a think tank associated with well-known market researcher Robert Prechter, who first advanced the idea in the 1980s.USATODAY.com.
Below is a video excerpt from one of Robert Prechter’s documentaries called “History’s Hidden Search Engine” and also a link to a free report he has “Popular Culture and the Stock Market”
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Elliott Wave – Google News
