November 2, 2018

India's Social Mood & The Tallest Statue In The World

Rohit Srivastava at Indiacharts explains brilliantly the correlation in society mood, tallest statue and fate of markets.

“Yesterday – the Indian Newspapers were splashed with advertisements of the Inauguration of the tallest Statue in the World constructed in the State of Gujarat. A big feat and it was undertaken by this regime in the midst of booming stock market. What can it tell us about the state of the mood in India and what lies ahead for the Indian stock market? At 182 meters this is now the Tallest Statue in the world."

This brought to my mind memories of the multiple articles on social mood written by Robert Prechter on the relationship between stock market peaks and construction of the words tallest buildings. He noted it was not the date of construction alone but the period when it was constructed that was important to know where we are in the long term. Without putting words in his mouth here is what he said in his Elliott Wave Theorist publication.

With that, let us see where we are with respect to the largest Statues in the World. It is my belief based on the work already done by the Socioeconomics Institute on the subject that the decision to construct the largest Statue in the world by Shri Narendra Modi, marks the strong social mood of the times in India. The confidence that all is well based on what has been a 15 year advance in stock prices. It also marks the final bubble phase of the Indian stock market, and based on my long term chart of the Nifty the 5th wave, in the form of an ending diagonal at the end of a Supercycle degree bull market. That it was completed yesterday is less important than that is was in construction for the past 56 months. The bids started in Oct 2013 and awarded in Oct 2014.


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