As we explained here on June 16 and June 19 and the April 2000 and December 2005 and January 2006 issues of The Elliott Wave Financial Forecast (see Additonal References in the June 16 and 19 entries), there comes a time at the end of a great bull market when the urge to “give back” overwhelms the investment community. Apparently, on the cusp of the greatest downturn in generations, those who have reaped the most abundant benefits of the bull market make the transition to fully committed benefactors. It makes sense. Obvioiusly, Warren Buffett and Bill Gates are extremely tuned in to the bull market as they have mined it more successfully than anyone on the planet. They’re also exceedingly good at optimizing situations, thus the “reversal.” Why wait until the fortune is worth half as much to give it away?
It's always reassuring when subsequent events and coverage comes along to confirm a socionomic hypothesis. After we posted the item on the top left, this week's issue of Newsweek appeared in our mailbox. It features a special "double issue" focused on "15 winners who use fame, fortune, heart and soul to help others." Long time readers are well aware of Newsweek's stellar track record for signaling the end of trends with covers that recognize extremes in social mood. If this contrary signal is at work here, and we suspect very strongly that it is, "The Giving Back Awards" mean it won't be long before it's every man for himself. |
