8The Market Can Turn on a Dime


Now I shall explore with you, in an easy-to-under-stand way, the fascinating—and frequently weird—mathematics and chaotic patternlessness of securities markets that occurs when markets are highly competitive and liquid (i.e., easy to trade in).

In the late 1960s, having exhausted my taste for political action as a small part of the early vanguard of student protest against the war in Vietnam, I turned my attention back to my studies. I was a graduate student in pure (theoretical) mathematics at Northwestern University. I had elected to concentrate in probability theory. I had never taken a course in economics ...

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