Happy March 14th or Pi Day
Today we celebrate March 14th or 3-14 or 3.14. There are many who would say Pi, the number 3.14159...., plays an inexplicable role in the natural rhythm of financial market volatility. e.g., Pi squared determined the number of days from the market peak in 2000 till its bottom in 2002. Or, the global markets peaked on approximately March 14th in 2000. There are an eery number of dates associated with Pi and financial markets but I won't bore you with the details. Is March 14th, 2007 another ominous approximation for volatility returning to financial markets?
So, what do circles have in common with financial markets? As one traverses the circumference, or "perimeter" of a circle, the path is repeated. If you traverse the circumference of a circle as a function of time, one produces a sine wave. What's a sine wave? Nothing more than a cycle. What defines financial markets? Cycles. Frankly, what defines life? Cycles. Everything around you is defined by a cycle. Seasons, the earth's rotation, the gestation cycle, time, light, life itself, electricity, birth & death, the human heart's rhythm, business, greed, Presidential elections, electromagnetics, the oceans, sleep, global warming and cooling, and on and on and on.
Think you've got life figured out? Think science has all of the answers? Think again. What if the future was already determined? The cycle of life was already determined? You want to know reality? Science knows nothing. It is simply the limit of man's feeble imagination. Happy March 14th.
Update: I sort of left the punch line hanging. My point with this post was that there is an argument to be made that regardless of what central bankers or world business leaders do, volatility might be a time based phenomenon which cannot be impacted by human actions. In other words, predetermined. A concept most will find difficult to accept or even disturbing. But, then again, most people thought the earth was flat just a short time ago. So, what do we really know in the sum total of universal truth?
So, what do circles have in common with financial markets? As one traverses the circumference, or "perimeter" of a circle, the path is repeated. If you traverse the circumference of a circle as a function of time, one produces a sine wave. What's a sine wave? Nothing more than a cycle. What defines financial markets? Cycles. Frankly, what defines life? Cycles. Everything around you is defined by a cycle. Seasons, the earth's rotation, the gestation cycle, time, light, life itself, electricity, birth & death, the human heart's rhythm, business, greed, Presidential elections, electromagnetics, the oceans, sleep, global warming and cooling, and on and on and on.
Think you've got life figured out? Think science has all of the answers? Think again. What if the future was already determined? The cycle of life was already determined? You want to know reality? Science knows nothing. It is simply the limit of man's feeble imagination. Happy March 14th.
Update: I sort of left the punch line hanging. My point with this post was that there is an argument to be made that regardless of what central bankers or world business leaders do, volatility might be a time based phenomenon which cannot be impacted by human actions. In other words, predetermined. A concept most will find difficult to accept or even disturbing. But, then again, most people thought the earth was flat just a short time ago. So, what do we really know in the sum total of universal truth?
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