3/3/2024 0 Comments Misbehavior of markets pdfIf you’ve ever seen Star Trek, then you surely remember the unforgettable android, Lieutenant Commander Data. how one company doubled its net capital by abandoning certain market principles.what Romanesco broccoli and market trends have in common and. how conventional economic theories view us all as Lieutenant Commander Data.In this summary of The Misbehavior of Markets by Benoit Mandelbrot and Richard L. Luckily, there is an alternative approach, fractal geometry, that can be used to look for ways to reckon with the inherently rough nature of changes in the market, rather than viewing these changes as anomalies or trying to force them into neat and convenient models. We only have to look back as far as the financial crisis of 2008 to know that markets are far more irregular and volatile than our current economic models would otherwise claim. Yet, all around the world, those same financial markets occasionally undergo massive collapse that stays completely hidden from mainstream analysts until it’s too late. Mainstream financial theories offer precise, comprehensive and self-contained models of financial markets.
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