It’s a random walk down Wall Street (thanks Louis, Paul, Gene, Paul 2, and Burt). To understand randomness, you must understand Pascal’s Triangle, Galton’s Board, the Binomial Distribution, Independent Identically Distributed (IID) random variables, and the gambler’s fallacy (look them up on Wiki) and also see below. If you don’t speak Riskese, you better find someone who does. Odds are you don’t know what the odds are. See here: https://lnkd.in/g7sSwgFQ
See also Benoit Mandelbrot or N.N. Taleb for their mathematical analysis of randomness. As with infinity, there is not just one type of randomness. Modern finance theory mistakenly assumes a moderate form of randomness & generalizes it; this is why it underestimates risk. Even Isaac Newton did not fully understand the idea of infinity (he lacked Cauchy's concept of the limit) that was basic to his discovery of integral & differential calculus, which understanding came much later.
Retirement Planning Specialist | Helping people to retire on their terms | Author of 'Planning for Retirement - Your guide to financial freedom' | Independent Financial Adviser
2moIt’s not random. It just appears that way to the vast majority of market participants.