Weather Map Theory Of Global Investing

Wednesday, May 11, 2005 | 11:00 AM

All investors create a intellectual construct of how and why the markets do what they do. (They may not be aware of it, but they do).  Mine is loosely based on Chaos Theory, which combines elements of random, non-linear dynamic behavior with Trend. That's why sentiment and market internals are so important to my construct.

Doc John Rutledge has a different approach, combining a Weather Map and  Thermodynamics.  Its an interesting construct, and philosophically, it works for me:

I also like the weather map metaphor because it  reminds me of two important facts. First, extraordinary investments,  like weather systems, are transitory phenomena. Even the best  investments don't generate excepitonal returns forever.

Second, investing, like meteorology and thermodynamics,  is not an exact science. It can help you to identify the storm  systems that are going to make things happen. And it can tell you  what things will look like when the storm has passed and thermal  equilibrium has been once again restored. But it tells you very  little about what happens in between.


Weather_map


His blog is worth checking  out.



Source:

RutledgeCapital
WEATHER MAP THEORY OF GLOBAL INVESTING
http://rutledgecapital.com/storm_watch.html
http://www.rutledgeblog.com/

>

Wednesday, May 11, 2005 | 11:00 AM | Permalink | Comments (1) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00d83479345669e2

Listed below are links to weblogs that reference Weather Map Theory Of Global Investing:

Comments

"Second, investing, like meteorology and thermodynamics, is not an exact science. "

Thank you for that bit of wisdom...and I've been thinking all these years that Thermodynamics was in fact a well established discipline in Classical Physics...

rt

Posted by: rich | May 11, 2005 11:33:35 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner