When Markets Misbehave Authored by Charles Hugh Smith via OfTwoMinds blog, When Benoit Mandelbrot’s book The (Mis)behavior of Markets was published in 2004, it was a revelation for many of us. I remember sitting in my car in a parking lot, unwilling to tear myself away from reading it. Here’s the super-short summary: from time to time markets crash for no visible reason. The internal dynamics of market structures are fractal, and one feature of this structure is that markets break down unpredictably. After the fact, we seek an external trigger–a Federal Reserve “policy error,” inflation fears, etc.–but these post-mortem explanations gloss over the… — Continue at ZeroHedge News : Read More
