Robert Prechter (Socionomics) made a twin contrarian observation giving profound and substantive explanation for where we are in our economic trends: One, we humans behave emotionally as one moving herd, and two, our herd emotions are the cause rather than the effect of the rising and falling of our markets. Never mind the overstatement and oversimplification (assuming I represent Prechter accurately); consider how the observation helps explain a great deal … and how you may be able to take advantage of it in your business.
Taking a piece related to the observation, you know that people buy what they want rather than what they need. Do you buy foods that are good for you or foods that taste sweet? Does a poor man have a 36 inch HDTV or extra roof insulation to reduce his heating bills? Given a choice between getting a wisdom tooth pulled or buying a name brand purse … in other words, the market is made up of customers and the customer buys, invests or doesn’t based on emotions.
Painting in broad terms, again for simplicity sake, those emotions can be broken into two basic camps. One camp could be comprised of emotion laden terms like excitement, joy, greed, vanity, hope, optimism, goodwill, confidence, bright colors, and openness. The other could be comprised of terms like fear, suspicion, anger, blame shifting, circle the wagons, pessimism, depression, subdued colors, and sarcasm. When enough people in the herd are dominated by emotions in the first camp, we call it a bull market; the other is a bear market. And of course there are big and little movements and trends in the herd.
Peter Rubel
Tags: bear market, bull market
[...] Emotional attitude also has an affect on success or lack thereof in business. Aside from attracting customers and business partners after the mode of Dale Carnegie’s How to Win Friends and Influence People, positive attitude also helps in plowing through the dips and allocating resources. And arguably the ascents and descents of market indexes are caused by mass emotional swings. [...]
[...] more on the economic theory, see economic trends. Share and [...]
[...] there is a larger context driving my thoughts here. I have discussed this context in terms of an economic theory, social mood, and bear market depression [...]
Interesting article i totally agree with the other comments. Keep us posting
[...] more of the economic times and for possible ways to beat the crisis, see the author’s blog or site Tags: bank, bear market, credit, debt, [...]
Tremendous post we have to spread the word about this website.You should have more interest .
Like another person discussed what a incredible blog this is. Generally I dont take some time with a remark although in your work you deserve 1. Congratulations are in order
Excellent goods from you, man. Economic Trends: Part I | Best Affiliate Family Blog I have understand your stuff previous to and you’re just too excellent. I really like what you’ve acquired here, really like what you’re saying and the way in which you say it. You make it entertaining and you still take care of to keep it smart. I can not wait to read far more from you. This is actually a wonderful Economic Trends: Part I | Best Affiliate Family Blog informations.