In bear markets the social mood is quite negative and therefore desire for violence and horror tend to increase. For example wars can start during and at the bottom of bear markets (eg 2003) when social mood is at the worst.
It should also be interesting to note that the desire for horror/crime/violence has steadily increased over the last decade as a very high rate. The SAW movies are a good example of extreme violence as well as the continuous barrage of CSIs, Bones etc etc on the usual channels.
What is surprising is the number of Horror movies produced each year now outperforms the number of family movies produced.
The chart below provides an overview of family and horror movies produced each year (semi-log scale) overlaid on the DJI and XAO indexes. Since the mid 1920ís family movies have held rank above horror movies and continued to do so ever since - until 2004.
The desire for horror will continue as the current social mood today is negative and is as yet to reach extremes. Horror movies have usually peaked at the bottom of bear markets (red arrows)when social mood has been the most negative.
In the future, family movies should remain flat or continue to decrease whilst horror continues to grow, until near the end of the bear market as it did in the 1920s, 40s, 70s and 80s. This assumes that the major movie houses donít collapse in the meantime.
It also raises the question about personal safety. Even in relative safe cities in Australia (whilst I don't have statistics) violence does appear to be on the increase. Recent television advertising on family violence has timed quite well with the bear market we are currently enduring and is perhaps a sign of more to come.