One More Time.
Economics = Psychology.

Time (1130.09) devotes a column to financial market forecasting, in particular to the wisdom of Robert Prechter. Prechter is a man after my own heart. Psychology and sociology rather than “efficiencies” drive the market: “Prechter argues,” says Time, “that standard economic models of financial markets depict prices as reflections … of true value.” But Prechter believes that “waves of social mood are the driving factor” of prices.

All I can add is: Amen!
Maybe even: Duh!

Tom Peters posted this on November 27, 2009, in Markets.