Newtonian Market Theory
"I can calculate the motion of heavenly bodies, but not the madness of people."
—Sir Isaac Newton
When it comes to figuring it out the direction of stocks, we can all learn a lot from one of the greatest scientific minds ever. Sure, we can calculate the motion of heavenly financial bodies, such as interest rates, P/E ratios and yields, but often a very big part of understanding financial markets is to know a little bit about market psychology. To put it in Newtonian terms, understanding the market is often an exercise in calculating the "madness of people."
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
