Causality, Chaos, and Risk In Markets

Todd Moses
DataDrivenInvestor
Published in
6 min readJan 9, 2024

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Mathematician Benoit Mandelbrot’s work in finance is a fascinating contradiction to what is taught in most business schools. From 19th-century cotton prices to modern stock exchanges, Mandelbrot discovered that both exhibited similar behavior [Mandelbrot & Hudson 2009]. He concludes, “But clearly, the global economy is an unfathomably complicated machine.”

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