fear on france must read , page-17

My question is 'When are Aussie investors going to stop being led like sheep?'

This short answer is; financial markets are emotional, not rational. In fact the non-rational herding behavior of humans is so instinctively entrenched that we do it sub-consciously. It's part of our flight to safety survival instinct that has evolved over millions of years.

"I make my forecasts using the Wave Principle. I don't rely on any data external to the market. I study the charts and interpret the waves as best I can. I could do this on a desert island as long as I had access to the charts. This method often places my forecasts outside of public opinion because the majority relies on news, which is always bullish at tops and bearish at bottoms. Majority opinion cannot be any other way, because the herding nature of human beings forms a popular consensus, which creates the market's trends and turns. The psychology of human interaction is the basic fundamental. The one thing that never changes is the dynamics of social psychology. As Bernard Baruch said, "the stock market is nothing but everyone's combined hopes and fears about the future."

Robert Prechter, founder of EWI.