The Socionomic Theory of Finance

The Socionomic Theory of Finance is a 13-year-long effort by Robert Prechter. It includes supporting s from twelve other scholars, writers, researchers and analysts. In contrast to the dismal science of economics, Prechter’s theory is original, exciting and intellectually fulfilling. Every rebuts conventions and offers ground-breaking insights in presenting a cohesive model with real-world application. The book draws a crucial distinction between finance and economics and ties both fields to human social behavior. Top reviewers from multiple disciplines have offered acclaim.

Author’s Note:

The socionomic theory of finance (STF) is a subset of the larger field of socionomics. Two of my previous books concentrated on socionomic theory overall, whereas this book focuses mainly on STF. To put this volume in perspective: It is not just another book challenging conventional economic theory on the subjects of finance and macroeconomics; it is a book about what should replace it. It is not another book updating the age-old observation that investors are emotional; it is a book about the origin of those emotions. It is not another book about occasional investor irrationality; it is a book about contexts accommodating rational or impulsive thought.

It is not another technical analysis book about interpreting financial market sentiment; it is a book about why there is even such a thing as financial market sentiment. It is not another book about market psychology; it is a book about psychology’s role in financial and social causality. It is not a how-to book about the craft of social futurism; it is a book about the primary cause of the social future.

Part I of this book dispenses with the ideas of exogenous cause and rational reaction in financial pricing. Parts II through V introduce socionomic theory and explain the fundamentals of STF. Parts VI through VIII expand the scope of the discussion. When pertinent, headers provide original composition dates for contributors’ chapters previously published elsewhere. I have edited them to fit smoothly into this book.

Contents:

• The Myth of Shocks
• The Conventional Error of Exogenous Cause and Rational Reaction in Finance
• Central-Bank Policy Does Not Control Interest Rates; It’s the Other Way Around
• Stocks’ Rise After the Charlie Hebdo Attack Was Anything But a “Rational Reaction”
• Time for a New Model
• The Structure of Socionomic Theory
• Sociometers and Their Application
• Socionomics and the Elliott Wave Model Provide a Framework for Projecting the Lag Time of News
• Did U C New Studies? Tweets N Blogs Predict Equity Prices
• From Observation to Prediction
• Socionomics Satisfies the Criteria of Falsifiability and Predictability
• The Financial/Economic Dichotomy
• Fundamentals of STF, in Contrast to Those of Economics
• The Economic-Socionomic Spectrum of Markets
• The Financial/Economic Dichotomy in Social Behavioral Dynamics: The Socionomic Perspective
• Unconscious Herding Behavior as the Psychological Basis of Financial Market Trends and Patterns
• Financial Herding is Universal and Fractal
• The Awesome Power of Exogenous-Cause Mythology and Consensus Thinking to Hijack Investors’ Minds
• On Mood, Herding and Alternative Hypotheses
• Are Crowds Really Wise? Study Confirms that Herding Undermines the Wisdom-of-Crowds Effect
• Linear Extrapolation vs. Fractal Extrapolation
• Elliott Waves vs. Supply and Demand: The Oil Market
• Popular Bubble Theories vs. the Elliott Wave Model
• Contrasting STF with Certain Tenets of the Austrian School
• Contrasting STF with Keynesian and Monetarist Technocratic
• Social Mood Impels Feelings of Certainty and Uncertainty
• Social Mood Influences Aggregate Opinions about Inflation and Deflation Irrespective of Pertinent Data
• Social Mood Governs the Tone of Federal Reserve Board
• Skepticism about “Potent Directors” Can Set You Apart from the Crowd
• Social Mood and Financial Economics
• The Metatheoretical Foundation of Socionomics
• Socionomics: A New Metatheoretically Consistent Social Science Paradigm
• Herding: An Interdisciplinary Integrative Review from a Socionomic Perspective
• A Literature Review of Social Mood
• The Socionomic Theory of Finance and the Institution of Social Mood: Pareto and the Sociology of Instinct and Rationalization
• Methodological Individualism vs. Methodological Holism and Their Resolution in Socionomic Theory
• Socionoimcs Theorist Wayne D. Parker, PhD, Dies at 61
• Brain Teaser: Discounting Theory vs. Socionomic Theory
• Using Socionomics To Predict Trends in the Popularity of Financial Theories
• Setting the Record Straight about Socionomics
• A Well-Known Scholar Embraces Socionomics
• Two Popular Science Magazines Review the Socionomic Hypothesis
• An Interview with Robert Prechter on the Origin and Future of Socionomics

The Socionomic Theory of Finance By Robert R. Prechter pdf