Monday, 23 October 2017

Social Mood and Market Sentiment

Many clients and newsletter readers have asked throughout the years how our analysis methodology works. It can be a little overwhelming and more complex than most other forms of analysis, but we feel that it is also more reliable and accurate in identifying with reasonable certainty targets and trends. 

For example, at the end of 2015 we called for a drop in the market from low 2100 region down to the mid 1800 region that would set up a rally to the mid 2500’s. We understand that many can’t make sense of it view it as us having some kind of “Crystal Ball”.

Reality is that we are trying to analyze market sentiment, as presented by the manner in which the way the stock market acts. Of course the great benefit of understanding the broader trend and utilizing this methodology has greater implications than simple profitability through trading and investing.

Many studies have been done about how to gauge the overall mood of a society to determine whether the mood reflects a society that is ripe for war or peace.

That does not necessarily mean that war will certainly break out, but it does give you warning signs that the environment is one in which war has become more likely.  We all know that no one can accurately predict the future, but if we are able to understand the social mood, then we can determine what the implications of social mood may mean to society as a whole.

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