What would you say is the physical analogy to the situation which often arises in markets where one market repels the other. Oil often repels bonds and bonds often repels stocks. It is sort of like the forces that make a motor to me? What's a better analogy? Here's a good discussion of like charges repelling.





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2 Comments so far

  1. Jordi Ozir on April 23, 2016 8:01 am

    Hello sir,

    I think that the financial market is a fluid dynamical system. In the book “practical speculation” the author writes about that it is a thermodynamical system. I liked that he mentioned that. Fluid dynamical systems are ofcourse thermodynamical systems but I got thinking about fluids because I got interested in them during the begining of my graduate course. The law of concervation of energy states that the change of in and outflux should be zero. An amount of outflux in one market should result in a influx in other markets. The sum of influxes and outflux should then cancel each other. Furthermore I would suggest that the amount of energy in the system can be expressed by a money index (I thought the M2 index, but I am not sure).

    With kind regards,

  2. Gregg on April 24, 2016 8:34 pm

    Hey Vic,
    I was wondering if you could shed some insight on the Soros/Rogers partnership during the 1970s? There isn’t much information on how these two guys were able to outperform everyone on Wall Street gaining something like 4,000 percent within a decade. How were these guys so successful? I don’t see them drawing trend lines and making those kinds of gains.


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