Friday March 17,2017
Update for 3/27/17
the comments section is now open, please post your thoughts
will be attending the Student Research Symposium, here May 5-6. Robert Prechter is the President and Founder of the Institute,
We have a unique opportunity to take the national stage of academic thought. Mr. Prechter has a new book out, the Socionomic Theory of Finance. .
Here is the link to the excerpt from Chapter One.
Re-defining causality is a major theme of the book. The media is constantly attempting to connect a physical or external or exogenous event with what happens in the stock market.
For example, the day after the Trump speech to Congress, the DJIA jumped 300 points. The media implied this was the result of an improved economy world wide and more positive reaction to Trump than was expected. But then for the next few days, the market gave back every single point.The media was scrambling to explain what exogenous event could have caused the change.
The first chapter challenges the conventional view of causality. Several examples are given like the above demonstrating that again and again, the markets do not necessarily follow what is deemed to be conventional causality. The conventional view is that external or exogenous events determine social action. Individuals are acted upon by news in the active sense.
Socionomic thinking turns this idea on its head. Instead the argument is that social mood is generated internally or endogenously. Thus the often unrealized, unremembered mood of the public generates social action.
I am asking our accounting students to read the excerpt and post a comment here on the weblog.
Learn more about socionomics at the Institute website.