Fasanara Capital letter to investors “Learn how to see. Realize that everything connects to everything else.” – Leonardo da Vinci [timeless] Fragile Markets On The ‘Edge Of Chaos’ Financial markets are complex adaptive systems, where positive feedback loops undermine resilience and bring to the brink of critical transformation Abstract: this note posits that systemic risk in financial markets should be analyzed through the prism of complexity science, using the analytical tools available to non-linear socio-ecological systems, where a shift in positive loops comes in anticipation of a dramatic transformation. Chaos theory and Catastrophe Theory can then help shed light on…
On This Page
- Fragile Markets On The 'Edge Of Chaos'
- What It Means To Be On The ‘Edge Of Chaos’
- Critical Transitions Follow Changes In Feedback Loops
- Edge of Chaos, Positive Feedback Loops and Financial Markets
- Financial Markets Are On The Edge Of Chaos
- Endogenous Tipping Point: The Market Itself
- Exogenous Triggers
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