Finance & Fury Podcast

How do you know that the share markets are likely to be in for a collapse?

Informações:

Sinopsis

Welcome to Finance and Fury Last week - The lead up of markets in relation to complexity theory – phase transitions and feedback loops in markets https://financeandfury.com.au/how-to-analyse-share-markets-by-treating-them-as-a-complex-system/ Today – look at the question - How do we know that we are in for a collapse – or better - what are the early warning signs in of a change in feedback loops triggering a phase transition a complex system There are signals – complexity can pick up on but equilibrium can’t – Uber listing on the market with $1.5bn loss – signal Today's episode is a conceptual framework expanding on the previous episode – particularly focus on market fragility and what signals point to it increasing The last episode talked about how after a while the same positive feedback loop can create an increased instability in financial markets – this can occur between public and private investors – but after enough of the same feedback – exposes markets to the risk of a systemic risk escalation. But