Bear markets bring rumors of war. The bottom of a bear market often brings war. There are many reasons for this. First, as Robert Prechter points out, wars and bear markets have the same underlying cause—a negative collective social psychology. Next, that negative social psychology produces fear. As fear increases, politicians seek to harness that fear for their personal advantage. They blame other countries for domestic problems. They threaten to and they do institute trade barriers. As trade barriers increase, the economic situation further deteriorates in their own country and around the world, further increasing fear. Eventually, demagogic politicians provoke or begin wars.
The One Thing We Must Do This Year
The One Thing We Must Do This Year
The One Thing We Must Do This Year
Bear markets bring rumors of war. The bottom of a bear market often brings war. There are many reasons for this. First, as Robert Prechter points out, wars and bear markets have the same underlying cause—a negative collective social psychology. Next, that negative social psychology produces fear. As fear increases, politicians seek to harness that fear for their personal advantage. They blame other countries for domestic problems. They threaten to and they do institute trade barriers. As trade barriers increase, the economic situation further deteriorates in their own country and around the world, further increasing fear. Eventually, demagogic politicians provoke or begin wars.