Globalization and the Butterfly Effect
Asset prices can jump suddenly with no apparent cause
A high degree of order
fractal shapes
chaotic systems
extreme events
traditional portfolio theory
high-volatility events occur
The high degree on margin used by Chinese retails investor
Panic selling ensued
Black Monday
program trading
the high degree of margin
Globalizateon continies to increace and capitall marcets cannect
The butterfly effect concept
capital markets connect
improvements in technology
Asset prices can jump suddenly with no apparent cause
Weather prediction models
Deterministic Nonperiodic Flow
dynamic systems
to advances in chaos theory
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
Periods of calm and storminess
stock prices going higher