Jan

17

 What are the major 3 body markets that orbit around each other in our solar market system and how do their epicyclic orbits relate to each other (in the future)?

Bill Rafter writes: 

I think the most important word in the Chair's sentence is "epicyclic", specifically because it is non-linear. Stocks specifically exhibit non-linear behavior, and seeming have forever. Bonds used to behave very linearly, but now behave similarly to stocks, although contrarily so. We have yet to find the defining characteristics of currency markets, but keep trying, hoping to find useful information relating to other markets. Gold is also a tough one, making one think it is a rigged game. REITS behave like a hybrid equity-debt vehicle. We tend to think of REITS as a free market version of the variable annuity (but without the huge vig).

Shane James writes: 

Arguably, and addressing prediction, the big 3 change regularly.

Simple stuff like the listing the biggest moves in X time periods is a useful, elementary starting point for cross market prediction.

Anton Johnson writes: 

Sadly, our system is unstable with the sub-stellar central mass consisting of the collective Central Banks. Orbiting, and sometimes consumed by, the central mass are the various financial instruments periodically switching in relative predominance as they accrete/disperse assets due to the actions of the brown dwarf.


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3 Comments so far

  1. Anonymous on January 18, 2014 4:38 am

    1. Labor market, as it is the largest market in the world. A rising consumer populace creates demand for new products.

    2. Start-up market for companies. Start-ups provide the technology and innovation to create excitement in the stock market.

    3. Interest rates/Federal banks.

    Rising consumer populace + Technology/Innovation + Interest rates = synergy for markets.

  2. Jay on January 18, 2014 4:40 am

    1. Labor market, as it is the largest market in the world. A rising consumer populace creates demand for new products.

    2. Start-up market for companies. Start-ups provide the technology and innovation to create excitement in the stock market.

    3. Interest rates/Federal banks.

    Rising consumer populace + Technology/Innovation + Interest rates = synergy for markets.

  3. d r dimick on January 19, 2014 11:14 am

    The Nickel Answer

    Here Victor’s repeated query so enhanced with picturing the relative sun/earth/moon rotational orbits highlights the manifold dilemma when addressing his three-body configurative problem.

    Again, as referenced in my preceding comment to the original article, see…

    http://en.wikipedia.org/wiki/Manifold

    The (planet) lines and circles as pictured are one dimensional – “each point of an n-dimensional manifold has a neighbourhood that is homeomorphic to the Euclidean space of dimension n.” So the solution to V’s query depends on one’s assumption of how the Euclidean (financial) space within which those “3 body markets” are relative in both (a) mass and (b) (non)directional movement (or velocity).

    What also appears interesting with this query is what V does not reference… planetoids…

    http://en.wiktionary.org/wiki/planetoid

    For instance, how do dark pools and derivative markets factor into our solar-like equations to correlate markets?

    Consider here a lemniscate…

    http://en.wikipedia.org/wiki/Lemniscate

    One of several solutions, such as ribbon-like (or figure 8) comparisons, suggests that three-body market studies do well for (statistical) triangulation but serve little purpose for optimizing systematic efficiencies. As Einstein faced with constructing a system of coordinates, there are two sets of problems due to symmetries on a given plane… “One is translation, which means a shifting of the plane so that every point is shifted in the same direction and by the same distance. The other is rotation about a fixed point in the plane, in which every point in the plane turns about that fixed point through the same angle.” See…

    http://en.wikipedia.org/wiki/Euclidean_space

    The point being here – relative to the utility of V’s query – is that one can make all the fundamental/technical/quantitative correlations that one needs to realize a predictive distribution of outcomes; nevertheless, without being able to measure the “quantitative relativity” of such modeling, we are unable to solve the (non)linear deficiencies of 99+% (according to Paul Wilmott) of those algorithmic formulations currently mapping the cosmology of our financial market system(s).

    dr

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