In November 2004, Prechter warned that the (then) newly elected President George W. Bush's second term would be "wreaked with havoc," and that "the downhill course... would pave the way for the Democratic candidate to become president in 2008."

• In 2005, Prechter and his team of analysts warned of a pending "real estate bust" that would see "weakening demand, supply spikes higher," a reversal in the S&P 500 Homebuilders Index, and an implosion of the subprime mortgage industry.
• In 2006, Prechter's EWI identified a major peak in the Philadelphia Bank Index, followed the next year (2007) by a bold forecast for a historic "Financial Flameout" that would dramatically transform the corporate landscape as we know it.
• Leading up to the October 2007 all-time high in the DJIA, EWI issued this bold alert on October 11: "Watch Out! The market faces a stout correction."
• And, since 2007, Prechter and his team have continued to see the most cataclysmic changes in advance: the drop off in commercial real estate and commodities; Greece's debt crisis and Dubai's stock market collapse; Fannie Mae's fall from grace and the failure of "Operation Bailout" -- and many more.

So, how was Prechter able to anticipate these historic changes to the economic and social landscape? Well, in a July 2 New York Timesinterview, Bob mentions a new science derived from the Elliott Wave Principle that he himself developed called "Socionomics." While the Wave Principle recognizes a mathematic pattern in the progress and regress of financial markets, socionomics reveals that the origin of that pattern is mass social mood. Socionomics explains the true origins of trends and events in everything from finance to fashion, politics to population demographics, and on. Using this science has been described as standing on the highest point of the tallest tree in "the mainstream forest" and seeing the changes coming while the majority remains on ground, blindly out of eye shot.