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Get Bob Prechter's most important paper yet for free!

For the first time ever the Socionomics Foundation is giving away its most important research paper to date: "The Financial/Economic Dichotomy in Social Behavioral Dynamics: The Socionomic Perspective."

Robert Prechter's landmark paper, written with collaborator Wayne D. Parker, broke new ground in proposing a fundamental difference between financial and economic decision making.

This paper:

  • Exposes the serious flaws in the Efficient Market Hypothesis, Asset Pricing Theory, Utility and Value Theory, and Business Cycle Theory.
  • Reveals why supply and demand apply to shoes and bread but not to stocks.
  • Explains the difference between economic markets for utilitarian goods and financial markets for investments and speculations.
  • Teaches how the Law of Patterned Herding leads to our downfall in the stock market.
  • Shows you how the unconscious mind makes decisions in times of uncertainty, and then the conscious mind convinces us that those decisions are rational.
  • And lots more!

Originally published in the Journal of Behavioral Finance in 2007, the paper spans 20 pages and is chock full of charts, graphs, and diagrams. It's our gift to you!

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About the Authors

Robert R. Prechter Jr.Robert R. Prechter Jr. has written 13 books on finance, beginning with Elliott Wave Principle in 1978, which predicted a 1920s-style stock market boom. His 2002 title, Conquer the Crash, predicted the current crisis. Prechter’s latest interest is a new approach to social science, which he outlined in Socionomics—the Science of History and Social Prediction (1999-2003). Prechter has made presentations on his socionomic theory to the London School of Economics, Georgia Tech, MIT, SUNY and academic conferences.

Wayne ParkerWayne D. Parker, Ph.D. is a clinical psychologist with particular interests in neuropsychology and analyzing the relationships among the disparate theories of the social sciences. He combines clinical work with teaching as an adjunct faculty member in the Psychiatry Department of the Emory University School of Medicine.