Archive for December 19th, 2010

The Greedy Cluster

Emotions are as mathematicaly ordered as stars in the galaxy.

Are emotions subjective or objective? Why investors are known to buy high and sell low? Why do we overreact? Why do we exaggerate? Why are we greedy? Why does the society panic? Why majority of us move with the trend? Can we define happiness as a mathematical function?

If we could do this, we could change our understanding of the society. We could understand how the society thinks and how it acts. Businesses could understand consumption patterns, target audiences. It could open up new ways of marketing and advertising.

The recent Economist article illustrated the correlation between money and happiness. If money and happiness were studied on an arithmetic scale, money it seemed could not buy happiness, the correlation was poor. But when similar GDP data was plotted along with life satisfaction on a logarithmic scale, the relationship between income and happiness looked more robust. The author does not make an attempt to explain why this happened. Logarithmic scale compares proportions. Somehow the pattern of increasing income was similar to increasing happiness. This lead to a more robust correlation compared to the initial belief that money and happiness correlations weaken beyond a GDP per capita of $ 15,000.

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Time Triads, Time Fractals, Time Arbitrage, Performance Cycles are terms coined by Orpheus Research. Time Triads is our weekly market letter. The report covers various aspects on TIME patterns, TIME forecast, alternative research, emerging markets, behavioral finance, market fractals, econohistory, econostatistics, time cyclicality, investment psychology, socioeconomics, pop cultural trends, macro economics, interest rates, derivatives, money management, Intermarket trends etc.