In the end, there is one reality: "Finance anchors the economy now; which makes it far more susceptible to non-rational dynamics," as the November EWFF puts it.This is in no way like the boom times of the 1960's (as illustrated on the chart above) -- when industrial growth reflected social mood's solidly bullish bias.And, as the November Elliott Wave Financial Forecast warns: "The financial system is not bound by laws of supply and demand in the same way as industrial economies. In finance, fear and confidence rule decisions." When those emotions turn, so does the entire order.
MyView
Finance anchors the economy, and in finance, fear and confidence rule decisions. So, once the truth puncture the fallacy of the real economy, fear will strikes. That is where fear will lead the social mood to sell all related financial assets.
Confident will evaporate. It doesn't need an event or catalyst to encourage the change in social mode.
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