Forum Archive Index - November 2002

["Capitalist" <capitalist@paradise.net.nz>]

 Phaedrus my dear - I know you have a fine mind and I respect that. But it seems to me what you are saying is  that investing using statistics is investing in arrears ie back-seat drivers looking in the rear- view mirror. I think it would work perfectly if the market was a temporal steady state - which it is not.

 

Take Pythagorean theory  a2 +b2 = c2 (I mean squared - can't get the little 2 on my keyboard lol) . So the sum of the 2 shorter legs on a right triangle equals the sum of the longer leg. None of the legs of the triangle causes any of the other legs to be a certain length, and none of an infinite number of triangles has any temporal relationship to each other.  So if your chart is a graph of human action, is it not investing in arrears, since you cannot predict human action?

 

Regards,

Ruth