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Horror Movies and Bear Markets: A (Non) Surprising Correlation

by Editorial Staff
Updated: August 11, 2020

Below, you'll find an eye-opening excerpt from the Popular Culture section of our August Elliott Wave Financial Forecast.

Popular Culture shows you how social mood trends -- bullish or bearish, as reflected by the stock market -- also shape trends in TV, movies, music, fashion, politics and more.

Now, our August Financial Forecast updates subscribers on the long-observed correlation between the popularity of horror movies and stocks.

It's a surprising perspective -- but a familiar one to our subscribers and those familiar with socionomics, the Elliott wave-based science of social prediction.

Enjoy!

(And maybe consider writing a script for a horror movie?)

In Elliott Wave International's first feature-length dissertation on "Popular Culture and the Stock Market" (August 1985), one of the most striking patterns Robert Prechter observed was a correlation between horror movies and bear markets.

Our monthly Elliott Wave Theorist cited Supercycle wave II (1929-1932) and the corresponding economic contraction into 1933 as a key precedent as producers brought to screen five classic horror films, Frankenstein, Dracula, Dr. Jekyll and Mr. Hyde, The Mummy and King Kong.

In August 1999, the month of the all-time peak in the Dow/gold ratio, our Elliott Wave Financial Forecast made use of this pop culture link to forecast the emergence of a new bear market with the help of a small-budget horror smash, The Blair Witch Project. Noting the $60,000 movie's outsized box office appeal, EWFF observed, "On some level, bear markets are that simple. People want a good fright, and they get it."

The latest social mood change is having the same cinematic effect. On July 18, The Atlantic disclosed that "Low Budget Horror Is Thriving." "Dirt-cheap productions are making money, finding eager audiences and garnering critical praise during a largely dead box office season."

Apparently, movie goers want a good fright again, and it is one of the few genres that fans will risk entry into a movie theater to get.

In the coming weeks, will the markets become as spooky as the current low-budget horror films?

One of the biggest surprises for our new subscribers is to learn that they can apply Elliott wave beyond the financial markets.

From popular culture to politics to design trends -- the same social mood that drives the markets also drives our cultural expressions.

The next few months will likely be a rocky time, both for the markets and... beyond.

Our flagship Elliott Wave Financial Forecast Service can help you through.

You'll see how Elliott waves bring certainty to our seemingly uncertain times.