Markets: Understand the Present to Forecast the Future (Part
Knowing where you are within a trend helps you see around the
By Elliott Wave International
In part 2 of our in-depth interview with Steve Hochberg, Steve
explains what else makes Elliott wave analysis so useful and practical.
If you missed part 1 of our in-depth interview with Steve Hochberg,
you can watch it here.
[Editor's note: A text version of the interview is below.]
Alexandra Lienhard: So, as editor of the
Financial Forecast and the Short-Term Update,
what's the goal with the services you provide?
Steve Hochberg: It's interesting in how we form them.
Bob [Prechter] writes the Elliott Wave Theorist, and has been
doing so since 1978. Back in the 1990s, his interest started
broadening and he started developing this field called socionomics. He
wanted to step back a bit from the day-to-day market commentary and
incorporate the views of socionomics into what he was writing about.
So, back in the late 90s, he brought a few people in and we started
writing sections of the Elliott Wave Theorist for him -- of
course, he edited it to make sure it said exactly what he wanted it to
say. Back in 1999, he said, 'You know what, this has been successful
enough. Let's do something really unique for our subscribers. Let's
give them not only the Elliott Wave Theorist and what I'm
talking about socionoimcally and in the markets, but let's also give
them your commentary in terms of stocks, bonds and everything else.'
So Peter Kendall, who co-writes the letter, and I got together -- and
Bob said, 'You write the Elliott Wave Financial Forecast and
you can deal with all these markets and cultural trends, and I'll stay
with the Elliott Wave Theorist and when I have something
important to say about the markets, I can say it. And when I have
something very theoretical that I want to put out there and broaden
the scope of what's going on, I'm able to do that through the letter.'
So we gave our subscribers both letters and it's really been a huge
success because we're able to communicate as often as we want and in
the manner that we want.
Alexandra: So Steve, there are so many financial
newsletters out there, and you've been writing yours for quite a while
now so what makes your analysis unique?
Steve: First of all, one of the reasons that we've
been around as long as we have, which is a little unusual in this
business, is because some of the views we have offer are unique. And
really it boils down to the Wave Principle and using that model to
forecast the trends in stocks, bonds, commodities, real estate,
precious metals and so forth. It's a model that is not that difficult
to understand, it's a little bit difficult to apply successfully,
continually, but people can pick up our newsletter and fairly quickly
understand what we're thinking about in terms of the markets -- and
more importantly, why. And as they read it, they'll naturally get used
to viewing it in the way we view which is a little bit different than
other people, the causality about psychology leading the news events.
As you get involved in the Wave Principle, you'll understand what I'm
talking about. But really, that's what makes us unique and that's what
makes it fun for us to write, and that's what makes it fun for people
Alexandra: Well, I know you're a busy guy, so thanks
again for sitting down and chatting today.
Steve: Thank you.
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This article was syndicated by Elliott Wave International and
was originally published under the headline Markets:
Understand the Present to Forecast the Future (Part
2). EWI is the world's largest market forecasting
firm. Its staff of full-time analysts led by Chartered Market
Technician Robert Prechter provides 24-hour-a-day market analysis
to institutional and private investors around the world.