How Physics Explains Why Perfect Market Prediction Is Impossible

Markets and weather share a fascinating secret: both are perfectly deterministic yet fundamentally unpredictable. In 1980, Nobel laureate Joseph Stiglitz along with Sanford Grossman discovered a profound paradox: if markets were perfectly predictable, they would cease to function entirely. Why? The answer lies in the deep physics of complex systems.

Read the full article on [Medium/Substack] to discover how computational irreducibility connects market behavior to weather patterns, and why the quest for perfect market prediction is fundamentally misguided.

Nicholas Fok

Investor | Mentor | Finance Leader | Successful Founder | Focused on AI Innovation

2 周

Interesting perspective, Samir! How do you think this unpredictability impacts long-term strategy development for traders and investors? Would love to hear your thoughts on navigating these "market weather" patterns.

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Patrick Wayland, CPWA?, CRPC?, CEPA?

Senior Vice President - Wealth Management Advisor

2 个月

Great article - Varma's Uncertainty Principle of markets?

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