LOL - Best get your maths brain on then, in short his theory is that markets need an ever increasing rate of return to keep punters in because they understand the likelyhood of a correction is ever present and need to be paid more and more to stay in.
This is achieved by herding as more and more join the party, unfortunately the growth rate becomes super exponential and highly unstable to the point that anything is able to knock it over, some cause is always atributed to large drawdowns but he contends that the price time series has become so unstable it could have been anything.
He has developed some very nice Log powerlaw maths to chart this and has had some success in predicting large market drawdowns within a probability timeframe.
He wrote "Why Stock Markets Crash" is full of maths but enough words to get the gist of it.
Redbacka's links to the relentless bid also describes what you might observe in a market thus characterised.
The trouble with the likes of me who dont really inderstand how the time probability bit works is something like the lead up to 1987 the market was pretty much super expontetial for 18 months before october
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LOL - Best get your maths brain on then, in short his theory is...
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