Robert R. Prechter and his son support my insistence that the role of the unconscious is probably the most significant determinant in the course of our lives. In their book 'At the Crest of the Tidal Wave: A Forecast for the Great Bear Market' (1995) they state that ‘the true fundamental cause of market movements is the nature of social man which...is governed by unconscious forces’. (219) These movements and waves of behaviour are controlled by the unconscious and because we are in denial, there is little hope of a quick recovery.
These guys are market analysts and in 1995 were already predicting the stock market crash we are witnessing today. They talk about how optimism is so deeply entrenched in our psyches that we are ripe for disappointment, despite the evidence of market trends and stock performance. ‘The false belief that government can affect trends ie change a bear market to a bull market, often causes people to stay in a bear market.’ (219) They predict 'bewilderment’ when people finally accept what is happening.
In 1986, the 'Elliot Wave Theorist' warned ‘make sure you are not caught up in the amorphous feelings of confidence, complacency and love at the ultimate top’ and goes on to commiserate with those who go against the trend because they will feel ‘isolated and unsupported’. Yep, I can relate to that….
Although it is not surprising to me that the cycles of creation and destruction continue, I have to say I am somewhat gob-smacked that the Pollyanna philosophy continues to be so endemic in our culture.
what has the stock exchange got to do with my thesis ?
