Life Is Not Linear
Monsters still rise out of the deep
Algebra is very good at
straight lines.
Life is very good at surprises
- be prepared for sudden stops, turns, and unexpected
dangers.
Mathematics
can be like the word "investment"
- it can give you a false sense of security.
Organic shapes do not
fit in Euclidean boxes; you damage perceived reality
if you try to force them in. Part
of the cause for the successes of Elliott Wave Theory
is its acknowledgement of fractal organic relationships
in markets. Elliott Wave's failures belong to many
parents.
Modern economists have
such a bad record simply because they have given up
on thinking a problem through and instead have resorted
to math and assumptions to create models.
They no longer have to
admit things such as "Adam Smith and Bastiat were
right." They can now say, "I'll have to tweak
my model a bit."
Sudden unexpected change
is the norm. As best you can learn to anticipate it,
and protect yourself a bit from it. Investment surprises
will happen, far more frequently than mathematical models
suggest.
Prepare for sudden change
- it will happen.
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