Irrational Exuberance part two

Amplification Mechanisms and Forex trading Signals
As if the structural factors listed above were not enough, Shiller argues that amplification mechanisms intensified the effects. First, there was a change in investor attitudes toward stocks. By the late 1990s stocks were considered a long-term investment that could not go wrong. Jeremy Siegel first published Stocks for the Long Run in 1994. Subsequent editions have appeared in 1998, 2002 and 2007. Stocks indeed performed well from 1995 until 2000, when the S&P 500 peaked around 1550. The S&P 500 then went on a 10-year stretch of underperformance. In fact, the S&P 500 was trading below its 2000 level in early 2011. This means 11 years of negative returns for buy-and-hold investors that bought in 2000.

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Second, as inferred above, Shiller asserts that public attention to the stock market hit new levels in the 1990s. This heightened awareness made more money available for stocks. The media fed this infatuation with increased coverage. Dinner party conversations invariably turned to the stock market. Stock tips and advice were also readily shared among acquaintances.
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Third, the consistent rise in stock prices provided a feedback loop that kept public attention on stocks. As the media reported the rise in the stock market, new money found its way into the stock market and pushed prices even higher. Higher prices led to more news and more news led to more investment money. A feedback loop evolved where price increases were feeding more price increases. Shiller calls these mechanisms naturally occurring Ponzi schemes because they feed on the perception of prior success.
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Cultural Factors
The news media and new era thinking are among the cultural factors cited by Shiller. Yes, the media seems to keep popping up in the book - maybe that is why technical analysts only look at price charts!
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The speculative bubble was clearly aided and abetted by the news media. Newspapers, television, radio and Internet media compete for public attention. Sensational stories with sound bites are more likely to attract attention than drab analysis with numbers and facts. Despite an inattention to detail, the news media was always there with specific reasons for a stock market move. The media always found the perfect excuse or news event to justify the move - after the fact. It is kind of like a solution in search of a problem.

Next up, click here to read our investment psychology article on the 11 most common cognitive biases that affect us both in daily life and when investing in the financial markets.

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GBP USD
SELL from 1.2460
Take profit 1.2300
Stop loss 1.2540
type order Market Execution is entering this trade at any price from 1.2460
technical analysis and forex signals for GBP USD
waves in the same direction will tend toward equality SO GBPUSD WILL resume bearish wave to level 1.2130
Riding Wave C in a Zigzag
Trend continues till gives a reversal signal
on hourly chart the Last wave determine the end of the pattern and Consists of zigzag that generate sell GBPUSD forex signals
reversal candlestick pattern on daily chart is shooting star
The price behavior is the result of Environmental pattern
Current surrounding Repetitive pattern is zigzag Wave C = 1.618 Wave A
History Repeats Itself that the future is just a repetition of the past
The bearish movement from level 1.3510 to level 1.1410 appeared before on price chart at 19-6-2015 and followed with bullish movement equal the current bullish movement from level 1.2240 to 1.2520 that give forex trading signals to sell GBP USD and according to this movement GBP USD will decline to 1.0580
Also The bearish movement from level 1.2650 to level 1.2240 appeared before on price chart at 9-7-2018 and followed with bullish movement equal the current bullish movement from level 1.1410 to 1.2650 that give forex trading signals to sell GBP USD so the gbp usd will decline near to level 1.1970
surrounding Repetitive pattern before this movement expanded flat Wave C = 1.618 Wave A
We expect price will repeat the same movement again and gbp usd price will go down toward 1.1970
Maybe the correction equal only one wave of previous correction
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