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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (97052)	4/26/2009 3:18:00 PM
From: ajtj99	Read Replies (1) \| Respond to of 116555

Markets are just reflecting human behavior, which tends to repeat. This can be illustrated in charts, where the patterns can be recognized and projected forward. The Theory of Efficient Markets is not the real world we live in. Whoever teaches that crap ought to be turned onto the streets. Human behavior is volatile, often irrational, and driven by base instincts in the markets. This helps drive the boom/bust cycles which appear every generation. One of the easiest patterns to project is the bubble pattern, as they almost always re-trace in a bell-curve. There are also fractal patterns out there as well. Furthermore, one of the most powerful forces in markets is reversion to the mean. When we get too far away, things tend to snap back like a rubber band.