Mandelbrot's critique

The following statements inspired by Mandelbrot and Hudson (2004).

  1. Markets are Turbulent;
  2. Markets are very, very risky—more risky than most theories imagine;
  3. Timing in Markets Matters greatly. Big gains and losses, as we shall see, are concentrated in short
  4. spaces of time;
  5. Prices often leap, they do not glide. There are thresholds to risky portfolios held;
  6. In markets, time is flexible;
  7. Markets in all places, and at all times, are alike;
  8. Markets are inherently uncertain, and bubbles are inevitable;
  9. Markets are deceptive;
  10. Forecasting prices is perilous, but you can forecast the odds of future volatility;
  11. In financial markets, the idea of ‘value’ has limited value
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