The Myth of Market Shocks

An Excerpt from Chapter 1 of The Socionomic Theory of Finance By Robert Prechter Few people find a new theory accessible until they first see errors in the old way of thinking. Part I of this book challenges the universally accepted paradigm under which humans’ rational reactions to exogenous (external, or externally generated) causes purportedly account for financial market behavior. The current chapter explores whether dramatic news events affect financial markets.
The Market Oracle

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