Robert R. Prechter

CEO at Elliott Wave International

Robert R. Prechter, CMT, is known for developing a theory of social causality called socionomics and for his career applying and enhancing the Wave Principle, R.N. Elliott’s fractal model of financial pricing. Prechter has made presentations on socionomic theory at the London School of Economics, the University of Oxford, the University of Cambridge, MIT, Trinity College Dublin, Georgia Tech, SUNY and various academic and financial conferences. In 2005, Prechter created the Socionomics Institute, which is dedicated to research and the application of socionomics, and the Socionomics Foundation, which supports academic research in the field. Prechter and colleagues have written several academic papers, including “The Financial/Economic Dichotomy” (2007) and “Social Mood and Presidential Elections” (2012), which became the third most downloaded paper on the Social Science Research Network that year. Prechter graduated from Yale University in 1971, joined the Market Analysis Department of Merrill Lynch in New York in 1975 and founded Elliott Wave International in 1979, where he has published monthly market analysis in The Elliott Wave Theorist. Prechter has served as a member of the board of the Market Technicians Association, as the MTA’s President in 1990-1991 and as a member of the advisory board of the MTA’s Educational Foundation. He is a member of the Triple Nine Society and the Shakespeare Oxford Society. Prechter has authored, edited or contributed to 18 books. His latest work, The Socionomic Theory of Finance, aims to replace conventional financial and macroeconomic theory with an internally and externally consistent paradigm based on socionomics.

 

 

ABSTRACT

Linear vs. Fractal Extrapolation

In this presentation, Prechter examines people’s natural tendency to extrapolate social trends linearly, a practice based on the unconscious assumption that outside forces are required to alter social trajectories. As an alternative, he offers extrapolation based on a fractal model of social change, which is based on the conscious observation that social trends fluctuate according to internal dynamics. The former method derives from a paradigm of mechanics, the later from the paradigm of socionomics.