I would like to point out a very interesting scenario that is playing out worldwide, which you should be noticing with interest.
The "Occupy Wall Street" protests, which began on September 17 with a few dozen demonstrators, have now spread to cities around the world. Organizers said that there will be demonstrations in 951 cities in 82 countries, including Canada, England, Australia, Spain, Germany, and Italy. They are all stating their anger at the global financial system, corporate greed and government cutbacks.
Most of the demonstrations have been peaceful. However, in Rome, a breakaway group, clad in black, torched cars and smashed bank machines and shop windows.
How often have we seen worldwide "demonstrations" that are unified by a single cause? Doesn't this tell us that something larger is potentially afoot?
Individuals worldwide from all different backgrounds, countries, and walks of life are uniting in a common goal. However, what they don't realize is that the common goal is being directed by a negative social mood that has been taking hold of humanity as a whole, and will only be getting worse.
You should be looking at these events and thinking that these are exactly the type of scenarios that will continue as social mood declines further worldwide. In fact, we will probably see more and more of the Rome-like demonstrations, rather than the peaceful demonstrations, the further we move into this social mood downswing.
This is providing us further evidence that social mood has formed a multi-decade peak, and that the worldwide social mood has now entered a multi-year period of decline. Being Elliotticians, and understanding that it is social mood that causes the trends in our markets, rather than exogenous events, we have to view these demonstrations as further proof that our markets are just beginning their multi-year decline as well. Furthermore, these exogenous events will simply become more and more pronounced and exaggerated as the social mood decline continues, and will only coincide with and support the downturn in equities rather than cause them. Remember that it is social mood downswing that causes these events, as well as causes the impending stock market decline.
As these worldwide events continue, you will notice that they will simply deteriorate into Rome-like riots, and will ultimately, and unfortunately, result in loss of life. Further results of this social mood decline will be that many of our major banks will go out of business, and many within the hierarchy of these institutions will be brought up on criminal charges.
The times in which we now live are, perhaps, one of the most important times to be aware of the social trend. Therefore, I would be watching these events very closely, as they will provide further clues as to where we are within the larger social trend so that we can rise above this trend and be in a position to protect our assets, as well as our families, from the impending societal decline.