Robert R Prechter: Speaks on Socionomic Theory: An Alternative to EMH
One of technical analysis’ great legends, and a slick speaker, Robert Prechter enthralled his audience – even the sceptics among them – with his presentation at IFTA’s annual conference held in London in 2014. As part of our effort to make the subject available to a wider audience, here is another of our educational videos which STA members and non-members can all view at their leisure; please feel free to share it.
But before you dive into the presentation have a quick read about his background, as published in Elliott Wave International’s website: http://bit.ly/2Det3JU
Like Bob, I too took an early interest in financial markets, commodities in my case rather than Wall Street, because my Dad and his South American cronies were heavily involved in farming while attempting to ward off rampant inflation – and having a bit of a dabble on the side.
In his talk Mr Prechter postulates that, as yet, there has been no proper challenge to the efficient market hypothesis (EMH). Though behavioural finance has questioned the rationality of human decisions, they have not delved into the other side of the equation explaining how exogenous causes predict moves in financial markets.
In a series of very long-term charts he shows how interest rates, war, peace, political parties, oil shocks and even terrorism may be bullish, bearish, or do nothing to stock markets and the price of gold. In other words, there is NO correlation – and you might as well get to grips with this idea – pronto!
The link is here:
And if the video has prompted you to dig deeper, his latest book:
The Socionomic Theory of Finance by Robert R Prechter (ISBN: 9780977611256) is available at the Barbican Library, London which holds hundreds of books on technical analysis.
Tags: Behavioural finance, Causality, Socionomics
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