Ep 53: Complex analysis, the stock market, and seeing what you expect
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Complex analysis, the stock market, and seeing what you expect
Two theories about the stock market, the efficient market hypothesis and technical analysis, are each attempting to analyze the same complicated system—namely the stock market and the fluctuations of different share prices in different companies. Both theories start by assuming that the price always reflects all relevant information. Even though they both examine the same system, and start with the same assumption, they draw completely opposite conclusions. It’s just so terribly easy to see what you expect to see.