Categories: All - markets - chaos - globalization - technology

by Екатерина Приступа, ЭК/м - 11о 5 years ago

351

Globalization and the Butterfly Effect

The phenomenon where small actions or events can lead to significant and unpredictable consequences is often observed in financial markets and is closely related to the butterfly effect.

Globalization and the Butterfly Effect

Globalization and the Butterfly Effect

When investors make money during a rise in the financial markets, other observers think the investors must have made a smart decision, which leads the observers to invest their own money in the markets

stock prices going higher
Periods of calm and storminess
to advances in chaos theory
dynamic systems
Deterministic Nonperiodic Flow
Weather prediction models

Globalizateon continies to increace and capitall marcets cannect

improvements in technology
capital markets connect
The butterfly effect concept

The high degree on margin used by Chinese retails investor

the high degree of margin
program trading
Black Monday
Panic selling ensued

Asset prices can jump suddenly with no apparent cause

high-volatility events occur
traditional portfolio theory
extreme events
chaotic systems
fractal shapes
A high degree of order