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Is This a Big Sign of a Big Stock Market Turn?

Financial legislation might mean something different than most investors believes it means

by Bob Stokes
Updated: May 30, 2018

A stock market warning has just developed for those who are bullish.

Here's what I'm talking about (CNBC, May 22):

The House voted May 22 to pass the biggest rollback of financial regulations since the global financial crisis.

In a nutshell, lawmakers want to get rid of onerous rules that have been placed on small and medium banks as part of Dodd-Frank, the law that was passed in 2010 to prevent another financial meltdown.

One might ask, "Why should bullish investors see this as a red flag? Isn't the loosening of financial regulations a positive for the stock market?"

Well, EWI has, indeed, observed a correlation between financial legislation and the stock market, but it's probably not what most investors expect.

Financial history shows that financial legislation tends to follow the stock market, not the other way around. Put another way, financial regulators implement reforms after busts and later turn optimistic and repeal or relax financial regulations after booms.

Besides Dodd-Frank, a historic example is Glass-Steagall, the first major federal legislation to separate commercial and investment banking. This law was enacted after the bottom of the 1929-1932 stock market crash.

The December 2013 issue of the monthly publication, The Socionomist, showed this chart and said:

SocialMoodFinancialReg

In 1933, Congress passed laws designed to prevent the crash that had already happened. In 1999, Congress passed laws designed to encourage the rally that had already happened.

Notably, the stock market rallied after Glass-Steagall passed, and then some 66-years later, plummeted shortly after the law was repealed.

Yes, the government is usually the last group to act on a trend. If technical indicators are also pointing to a reversal, investors would do well to position their portfolios accordingly.

So happens, EWI's analysts are saying that many of the market's technical indicators are suggesting a major acceleration in the DJIA's current Elliott wave price pattern.

"I can't believe it."
"Who would have thought?"
"Did you ever think we'd see THIS?"
"I wish I'd seen THAT coming!"

"That" could be anything. Radical politics. A crazy fad. Voter polarization. A sudden shift in purchasing behavior at your business. The emergence of a massive new industry.

A war breaks out.

Another ends in a truce.

Whatever it is, any unforeseen change in our society's order can outrage you, shock you, awe you, present you with opportunities and risks. It can leave you searching for answers.

What if you could have the answers -- objective, evidence-based, well-researched answers?

Imagine scrolling through the news, nodding and saying, "THAT makes sense," and "THAT is right on time." Imagine becoming that unusual person who understands what truly drives today's events; who calmly anticipates change; who welcomes change -- to profit by it and to protect others from it.

You CAN become this person -- by putting an exciting new behavioral approach at your fingertips.

We call it, the Thinking Person's Membership.

HOW IT WORKS

The new science of socionomics starts with a simple observation: How people FEEL influences how they will BEHAVE.

At the Socionomics Institute, we look at how the whole society is feeling today – so you can anticipate how society will behave tomorrow. Using various indicators, we track social mood in real time across the globe. You’ll see how changes in social mood shift everything from the songs people want to hear to the leaders they elect; from people’s desire for peace to their hunger for scandals.

This is a rare, awe-inspiring insight. It’s what enables the Institute to help our members stay ahead of new trends that surprise almost everyone else.

Your Thinking Person’s Membership gives you this unrivaled perspective and puts you miles ahead of the herd.


YOUR PATH TO UNLEASHING SOCIONOMICS IN YOUR LIFE

Your Membership Resources Fall Into Three Categories:


THE SOCIONOMIST MAGAZINE
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The Socionomist is dedicated to helping readers capitalize on social mood. Each month, our analysts show you how social mood is driving trends around the world. They identify upcoming turns and forecast bold new changes that no one else sees coming. Politics, popular culture, disease, family, religion, industry – they are all powered by social mood; The Socionomist shows you how so you can prepare for what’s ahead. No thinking person should be without this magazine.

THE SOCIONOMICS BOOK SERIES
5 Online Books ($227 total value)

With hundreds of charts and illustrations, this series introduces socionomics and demonstrates how social mood motivates social events, not the other way around:

The Wave Principle of Human Social Behavior (1999) – Learn how history unfolds in form-driven fractal waves. Value: $39.

Pioneering Studies in Socionomics (2003) – See how to apply socionomics in this sweeping volume of revealing case studies. Value: $39.

The Socionomic Theory of Finance (2016) – How macroeconomics and finance really work – It’s very different from what you learned in school! Value: $79.

Socionomic Studies of Society and Culture (2017) – Discover how you can anticipate and capitalize on trends in pop culture and broader society. #1 Amazon social theory bestseller! Value: $35.

Socionomic Causality in Politics (2017) – Grasp political trends in a new way by seeing exactly what propels them. Value: $35.

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You get a well-organized, full library of exclusive content. Plus, you get every new piece of content we release while you’re a member, including any book and DVD in digital format, as soon as it’s released; a virtual seat at any online event we host; a copy of any academic paper we release; and access to any available recording of speeches we make. Includes our Essential Mood Conference showcasing the most useful talks from the first six years of the Institute’s annual conference.


2-Month Introductory Offer

Try the Thinking Person's Membership for two months.

Price: $77

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You get everything the Institute produces in a year.
Value: $1,696+

Price: $377 (Save 77%)