Pendulum theory: An imperfect way of understanding the stock market

Pendulum theory: An imperfect way of understanding the stock market

The pendulum theory grew out of Sir Isaac Newton’s 17th-century studies of gravity and physics, particularly his second law of motion. Yet the theory turns up in discussions of all sorts of non-mechanical topics. This includes investors’ efforts at understanding the stock market.
You could sum… Read More

Understanding the Stock Market – The “January Effect”

Market weakness early in 2008 unsettled investors who are believers in the so-called ‘January barometer’ — the idea that January’s performance provides a clue to understanding the stock market for the rest of the year. However, this indicator is something of a self-fulfilling prediction, because… Read More