be_ixf;ym_202104 d_20; ct_50

Select Page

Pop Music Warns of a Stock Market Correction

Pop Music Warns of a Stock Market Correction

You may not know who Luis Fonsi, Daddy Yankee and DJ Khaled are. I don’t. But I know Rolling Stone called their recent hits the “two contenders for Song of the Summer.”

Fonsi and Daddy Yankee sing “Despacito,” and DJ Khaled performs “I’m the One.”

I found that link on economist Tyler Cowen’s Marginal Revolution blog. He noted the tempo of pop music is slowing down.

This is important to know because there was a study about how pop music relates to the stock market. Changes like this are bearish.

You may not know who Luis Fonsi, Daddy Yankee and DJ Khaled are. But they're important to know because there was a study about how pop music relates to the stock market.

(Source: EWM Interactive)

The link was first noted in a 1985 study called “Popular Culture and the Stock Market.”

The idea is simple. Cheerful and fun songs are popular during positive mood periods, and somber or bitter songs proliferate in negative mood environments, according to socionomist Robert Prechter.

This year’s candidates for the Song of the Summer are “both remarkably leisurely singles that percolate below 90 beats per minute.”

Rolling Stone noted popular songs have slowed down since 2012.

The average tempo dropped by 23 beats per minute (to 90.5 bpm) over that time.

The percentage of songs above 120 bpm fell from 56% to just 12.5% in the past five years.

The somber tone of pop music is another indication we could be nearing a bear market. It’s an indicator few are following. But it’s one that worked well in the past.

Regards,

Michael Carr, CMT
Editor, Peak Velocity Trader

Newsletter Sign Up

Sponsored

MEET OUR EXPERTS

WHAT READERS ARE SAYING..

"I went all in with $310,000 and a year later, my portfolio was at $425,000. This I would have never accomplished with mutual funds, I will be following your research for the rest of my life thank you Paul and the team."

- Karl A.

“I found Profits Unlimited in Summer 2016. Starting with about $20,000, I began following your recommendations and did my own thing as well. Four years later, I am happy to report my portfolio is now in the six figures."

- Andrew

“Thirteen of my positions are up well over 50% in less than a year since joining your service. Two are in the triple digits with several close behind. My personal money manager, who works for one of the largest banks in the country, is envious of my gains. I never dreamed this was possible. My trips to China to teach English to young Chinese students is now much more affordable. Thank you for your dedication and help.”

- Chris K.

Share This