Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (70596)	10/12/2008 7:01:29 PM
From: Maurice Winn	1 Recommendation Respond to of 74559

Language can describe markets quite well because humans work on language principles backed by emotion, with maths at the margins, when it comes to financial systems and what people do. You might even be at an advantage over those overly enthused by mathematical models such as those at Long Term Capital Management and the swarms of Big Noter financial institutions which have gone belly up. Maths isn't as precise as some proponents would have, just as computer models aren't. Garbage in = garbage out remains applicable. Having six significant figures doesn't make the outcome right if the first significant figure going in is imaginary. Science is often presented as factual too, which it is, but only to the extent that data is properly measured and then sensibly interpreted. A normal mistake is to confuse correlation with causation. <The older I get, the less I understand>. Perhaps it's just more risk averse. We tend to get gun-shy after accumulated memory of mistakes we make. Mqurice