Financial advice rarely considers the chaotic nature of markets. But as Benoit Mandelbrot points out with his idea of fractals, the financial industry often woefully miscalculates the level of risk and expected return, particularly in relatively short timeframes, like a decade.
Everyone should make the effort to learn how to critically evaluate investment advice. Fractal and Chaos Theories can help you understand some of the common pitfalls. In this video, we jump back in time to the bull stock markets of the 80s and 90s and explore what would have happened had you followed some of the investment advice offered back then, while exploring the fractal theories of Benoit Mandelbrot.
PLEASE NOTE: This video is not intended as financial advice or advice on how you should invest. You should take no specific strategy or recommendation for investing from this video. It is intended only as an overview of my own experiences and observations on investing, and a commentary based on historical analysis and my understanding of the chaotic and fractal nature of stock and other financial markets. Seek out a qualified financial advisor and carry out your own due diligence before commencing any form of investing.
SOURCES:
New Zealand Herald newspaper:
nzherald.co.nz
Market ride goes from fun to frightening:
www.nzherald.co.nz/nz/market-...
CREDITS:
NZSX50 Chart:
Jashuah, CC BY-SA 3.0 (creativecommons.org/licenses/..., via Wikimedia Commons
Nikkei Chart:
Monaneko, CC BY 3.0 (creativecommons.org/licenses/..., via Wikimedia Commons
Mandelbrot photo:
Rama, CC BY-SA 2.0 FR (creativecommons.org/licenses/..., via Wikimedia Commons
3D Fractals:
Brotter121, CC BY-SA 4.0 (creativecommons.org/licenses/..., via Wikimedia Commons
Normal Distribution:
Wolfgang Kowarschick, CC BY-SA 4.0 (creativecommons.org/licenses/..., via Wikimedia Commons
30 апр 2023