Tuesday, July 20, 2010

The Market and the economy

These are two different worlds - and are rarely if ever in lockstep or equilibrium. The Market is a discounting mechanism the economy is an evolving complex adaptive system. If the market is ahead on fundamentals the economy can catch up if it behind on fundamentals the fundamental can deteriorate  or the market can correct but this can take years only when the divergence becomes economically dysfunctional.

The market as a mutating force in it's own right.

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