单词 | FRACTAL MARKET HYPOTHESIS |
释义 | New capital-market theory to explain and predict market behavior. Done by combining fractals and chaos theory with traditional quantitative methods. Daily randomness of the market and anomalies such as market crashes and stampedes are taken into account. Theorizes that (1) market stability and liquidity exists comprised of investors with varied time horizons, (2) these investors sit in their ‘preferred habitat’ of a time horizon regardless of market indications, (3) market prices may not reflect existing information, and (4) market price trends indicate expected earnings changes, mirroring long-term economic trends. In ‘Chaos and order In The Capital Markets’ (1991 book) and ‘Fractal Market Analysis: Applying Chaos Theory to Investment and Economics’ (1994 book), Edgar E. Peters proposed this theory as the author. Also refer to capital market theories. |
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