Robert Prechter of EWI, has made some brilliant calls in his career. Although he may not have been on the money, with his recent short-term market calls, but here's why i've loads of respect for this guy - the man's a genius when it comes to socionomics.
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Tea Party: Why NOW?
By Vadim Pokhlebkin
The Tea Party has gathered enough momentum to become a political force. According to an April Gallup Poll, "28% of U.S. adults call themselves supporters of the Tea Party." (gallup.com)
Earlier this year, New York Times columnist David Brooks wrote this (underline added):
"Over the course of this year, the tea party movement will probably be transformed. Right now, it is an amateurish movement with mediocre leadership. But several bright and polished politicians... are unofficially competing to become its de facto leader. If they succeed, their movement is likely to outgrow its crude beginnings and become a major force in American politics."
I realize the Tea Party itself is a politically charged topic. But set aside your personal opinions for a moment, and please read the quotes below. They are from Robert Prechter's October 2003 Elliott Wave Theorist.
In that issue, EWI's president gave several prescient forecasts regarding social life and politics in the coming bear market (underline added):
- "Social groups, including economic, political, religious, genders and classes, will polarize and splinter further. I.e., they will polarize both internally and with respect to opposing groups."
- "Both patriotism and anti-government sentiment will grow into powerful emotional forces."
- "Politics will become far more polarized, splintered and radical."
- "The U.S. will accelerate its trend toward socialism. Opposition to that trend will be vigorous."
- "Third parties will gain political clout and win local elections. Libertarians, greens and others will capture many local offices and probably at least one state government."
How was Bob Prechter able to predict the emergence of a third party and the polarization that's been tearing this country apart for the past few years?
He did so by using socionomics, the new science of social prediction based on the Elliott Wave Principle. It postulates that social mood (an unconsciously shared herding impulse) drives social events. Elliott wave patterns in stock market charts reflect social mood. Thus by forecasting the stock market you can also anticipate the tenor of social events -- often with stunning accuracy, as you can see.
Find the idea of socionomics fascinating? You're not alone -- the folks at EWI's sister organization The Socionomics Institute share your passion. You can read their latest socionomic observations and forecasts every month in The Socionomist. Take a look at what's inside the latest issue. (You also get instant access to May, April, March and February Socionomist issues.)
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