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> The important thing to remember is that finance is not physics and any model of reality is just that - model. Side remark: this is true of physics too, only
by praptak 15y ago
> The important thing to remember is that finance is not physics and any model of reality is just that - model.
Side remark: this is true of physics too, only the models are better tested and we are better at understanding their scope of application.
- gnosis 15y agoIndeed. The map is not the territory -- even if some people get confused by terms such as "physical law".
- anothermachine 15y agoBut physics doesn't pay attention to our models and intentionally change its behavior to stymie us. The financial market does, since financial modelling is the recursive introspective study of its own modelling process.