econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 07 August 2016

Markets: Understand The Present To Forecast The Future

from Elliott Wave International

Steve Hochberg, our Chief Market Analyst, sits down with ElliottWaveTV to talk about his background, how he discovered the Wave Principle, and why "it's applicable to all markets."

Alexandra Lienhard: I'm Alexandra Lienhard for ElliottWaveTV, and today I'm joined by Steve Hochberg, Chief Market Analyst at Elliott Wave International. Now Steve, everyone's got a background, a story to tell, so what's yours? How did you become interested in the financial markets in the first place?

Steve Hochberg: Probably like a lot of other people did. Growing up, you start reading the financial papers and you probably have a family member involved. In my case, it was my grandfather who was involved in the market. So you start, you hear things people talk about; you get interested in companies and so forth. It really wasn't until college that I started really getting involved in what was going on. I was in college in the 70s, and if you remember in the 70s, we were in tumultuous times, you had the big gas lines, oil prices were skyrocketing and commodities, stocks were going up and down. I kept reading in the newspaper all the things that were going on and you start to wonder, how does this affect me? And it leads you to the financial markets -- so that's how I got involved.

Alexandra: And what about the wave principle, how did you discover it and then ultimately end up at Elliott Wave International?

Steve: Well the story involves a dog, the 1812 Tchaikovsky overture and about 10-foot speakers.

Alexandra: Do we have enough time for this?

Steve: No, we don't have enough time! But if people see me speaking at conferences, ask me about the story, it's a great story. I started working for Merrill Lynch right when I got out of college in 1983. Working with Merrill and the financial markets, you kept reading about this man named Robert Prechter. In 1984 he won the United States trading championship, at the time with a huge gain, biggest gain, 444% in a quarter. I said, 'You know what, what is this guy doing that I'm not doing? I need to learn what's happening here.' So I started reading Bob's analysis. The interesting about the Elliott Wave Principle and the Wave Principle model is they don't teach it in college, there's no course on it. So in order to learn it, it's really self-taught. You've got to go to the source material. I think that's the best way to learn things in life. Not so much being taught about it, reading in a textbook, but actually for yourself, going back to the source material. Now, in our case, Bob did all the heavy work because he actually went to the New York library and got all of R.N. Elliott's original works and published them in a book. You were able to go to one of Bob's books and actually read Elliott's writings. That's really how I came to the markets, just going to the source material and saying, 'You know what, this makes a lot of sense to me in how I look at things.'

Alexandra: So you've been using the Wave Principle for quite a while now. What do you find to be the most useful thing about using the Wave Principle to forecast the financial markets?

Steve: Well, obviously, its logic. It's very logical. There are set patterns that we look at, and it's not so much that we can see the future, but we can understand what's going on in the present which implies something about the future. So if you can determine where you are within the structure of this psychology that moves from optimism to pessimism, then you can kind of orient yourself about what's going to happen. It's great for understanding the tenor of the times, and it's applicable to all markets because people are people. When we get into a crowd, psychology, crowd psychology as we call it, or social mood, trends and reverses in these recognizable patterns so you can kind of ascertain where you are within the development of these patterns, you can make a forecast about the future. Sometimes our forecasts can be very accurate because we know exactly where we are, sometimes we're not quite sure, but that's OK. Those are markets and psychology and people.

Alexandra: You cover almost every asset class. What keeps you excited about covering so many markets?

Steve: When you're able to make a successful forecast, that really gets you going because you're able to see around that next corner. So many people think what's happening in life is random, random events. The actual events themselves might be random, but the tenor of the times aren't. The tenor of the times goes through these trends. What excites me is kind of identifying where you are within a trend because you can kind of see around that next corner and that's kind of cool when you're able to make a good forecast, or make a good trade in the market. It gets you excited about the next day and what's going on.

Editor's note: This is part 1 of our in-depth interview with Steve Hochberg. Come back on August 5 to watch the rest of the interview where Steve talks about what else makes Elliott wave analysis so unique.


Get free insights from EWI's Steve Hochberg in a new report, "What's Wrong With the Economy?"

After noticing the real GDP per person just dropped to its lowest level in more than 75 years, a major newspaper recently asked a slate of economists, "What's wrong with the economy?" Not one of them referenced the telling data in these charts. Now you can see what they don't want you to see.

Get your free report from Steve Hochberg now

This article was syndicated by Elliott Wave International and was originally published under the headline Markets: Understand the Present to Forecast the Future (Part 1).

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Expected Effects of Petitions to Improve the Monetary System
Energy and Falling Productivity
News Blog
October 2016 Economic Forecast: Outlook Insignificantly Declines But Little Economic Strength Entering 4Q2016
1 Minute. 34 Seconds. In The U.S., That's All It Takes To Register To Vote. A Single Registration Lasts A Lifetime Of Elections. We've Made It Easy For You Here: Http://g.co/elections/134
Durable Goods New Orders Unchanged in August 2016
90% Rally In Sugar Prices Since Late 2015
U.S. Real Wage Growth: Slowing Down With Age - Part 2 Of 2
Infographic Of The Day: Four Tips To Grow Wealth
Early Headlines: Asia Stocks Down, Yen Rises, Oil Soft, Wells CEO Gives Up Bonuses, Trump Didn't Want To Embarass Clinton, US Asset Bubbles, US Crime Rates Falling And More
What is Democracy, Anyway?
Transcript Of Elizabeth Warren Questioning Wells Fargo CEO John Stumpf
Documentary Of The Week: Elizabeth Warren Indictment Of Wells Fargo
Clinton Wins Round One
Why Alzheimer's Research Is Failing To Hit Treatment Targets
Voters Still Distrust Both Presidential Candidates
Investing Blog
Banks Of Absurdity
Investing.com Technical Summary 27 September 2016
Opinion Blog
Trump Stumped In First Debate With Clinton - Will It Cost Him?
Why All Banks Should Be Federally Owned
Precious Metals Blog
War On Cash Turns To $20, $50, And $100 Bills
Live Markets
28Sep2016 Market Close: Wall Street Closes Higher After A Sluggish Start In The Morning, Crude Prices Close Higher In Face Of GS Saying Crude Will Fall, Indicators Neutral
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government



Crowdfunding ....






























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved