Socio Times interprets
the daily news in socionomic terms. Socionomics is the
study of social mood, the self-regulating law of social
progress and regress. Socionomists relate cultural phenomena
to the stock market because it is one field of mass
behavior where detailed and voluminous data exist. These
data first revealed the patterned form of social mood,
which R.N. Elliott discovered and named the Wave Principle
in the 1930s.
In the 1980s and 1990s, Robert Prechter proposed a
socionomic hypothesis, that the Wave Principle regulating
social mood ultimately shapes the dynamics underlying
the character of human social action. In The Wave
Principle of Human Social Behavior and the New Science
of Socionomics (1999), Prechter held that the rise
and fall of social mood is the engine of history. When
social mood becomes more positive, people buy stock,
behave more productively, vote for incumbents, have
more children, blow off fewer bombs and act peacefully
toward their neighbors. Conversely, as social mood becomes
more negative, people sell stock, behave less productively,
vote for challengers, have fewer children, blow off
more bombs and act belligerently toward their neighbors.
The standard presumption is that social events buffet
social mood relating to the economy, politics and culture.
Socionomics proposes the opposite causality: that social
mood regulates changes in social actions relating to
the economy, politics and culture.
By tracking these correlations, and countless others,
such as trends in art, music, entertainment and fashion,
to name but a few, against the market and EWIâ€™s socionomic
forecasts, SocioTimes endeavors to expose the fallacy
of the conventional view of causality and promote a
deeper, day-to-day understanding of the true character
of social change. If the 70-year history of the Wave
Principle is any indication, it promises to be an entertaining
and enlightening journey.
All comments are those of Peter Kendall, unless otherwise
indicated. Peter Kendall is the co-editor of The
Elliott Wave Financial Forecast.