3 Phase Patterns of ME on Markets

For the three couses, Utopia, Heaven on Earth and DC, the phase III pattern period respectively lasted 3, 6 and 5.5 years -- and is correlates with 100%, 40% and 200% gains in the S&P 500.

The phase III pattern of the prior Heaven on Earth project came to a close with the trend stopping impact of the DC project. Upon resuming a new phase III pattern, the DC project, IF causative**, greatly amplified the upward slope of Heaven on Earth phase III pattern by a factor of 5.

At this point in the analysis, prudence dictates that this be identified as an interesting but probably random correlation of ME project phase III's with rapid market growth.
For example, the DC project phase III pattern period corresponds to the internet bubble period. "How convenient!" any rational observer would say -- laughing it off.

However, ME theory predicts that the ME produces strong coherence in all levels of a society, and should spur innovation and breakthroughs. The internet bubble period was a dramatic breathtaking period of such innovation. The increased speed and connections of people, things, information dramatically transformed how business and personal lives were conducted. Quite serious and respected financial analysts at major firms bought heavily into the notion that we were in a major "breakthrough period", a "New Economy", where old rules no longer applied. While such exuberance was out of proportion to and overshot the reality, and the market finally found its equillibrium after the heady high of the "rush" towards the "New Economy", the innovations and breathroughs of that period were quite real and dramatic. And continue today. Just as ME theory predicts.

Thus, while the ME theory's predictions on financial markets are far from being clearly and repeatedly demonstrated in a statisically significant sense, they certainly have not been disproven -- as indicated by the highly correlated positive market performance following these three ME courses.

More analysis to follow, as data on other ME projects is obtained and mapped to changes in financial makets.


*See precceding post on short-term effects of ME for an explanation of the three phased pattern durning and after ME projects.

** A casual link has yet to be demonstrated. All that can be said currently, at this stage of the analysis, is that ME phase III patterns are strongly correlated with periods of sharp and rapid market growth.