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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: arun gera who wrote (87411)2/22/2012 9:31:44 AM
From: elmatador  Respond to of 219691
 
We can go post Classical economics Adam Smith as we went Physics post Newtonian.



To: arun gera who wrote (87411)2/22/2012 5:01:28 PM
From: Maurice Winn2 Recommendations  Respond to of 219691
 
Isaac Newton had not heard of Financial Relativity Theory or garden variety Einsteinian Relativity Theory. < Newtonian Physics did not work either...Isaac Newton lost money in stock market in the South Sea stock.
>Anyone who who thinks quantum physics can be applied to markets is, shall we be kind, barking up an imaginary tree.>
> No wonder he lost money. He couldn't calculate the madness of markets.

While Financial Relativity Theory does not involve gravity or the other 3 forces of the apocalypse, it does involve the fifth force of the apocalypse which is consciousness, aka an observer, [aka Mr Schrodinger, or, viewed from INSIDE the box, his cat], which causes the other forces' wave functions to drop into reality out of the quantum soup.

Newtonian Physics combined with Newtonian financial theory [gold-based billiard ball economics] = financial loss, or at best, Aztec economics.

There is actually a lot in common with quantum/relativity and markets - they all bounce off consciousness/observers in a hall of mirrors Goedelian self-referential feedback loop. So when "quants" run their algorithms predicting market movement, they need to include their own reaction to the reactions of those who respond to their moves which are also predicting their own and the quant's reaction to what's expected to happen next. If they followed that far, another 10 iterations should have them bamboozled. And the moves are not damped.

Mqurice

PS: It's a bit laborious going through the ElM editing process and his precision is typical of editors, though he does add value.