THE END - Learn how to analyze and trade markets using the pattern caused by human behaviour.

Updated: Jan 2

2020 is shaping up to be the end of many trends and things reaching the end of the line but one thing that stands outs from the scandals that are exposed at the top of market cycles is inequality.

As global markets rise in developed countries they give rise to inequality as income distribution deviates further and further from the hypothetical line of absolute equality. An example of how to track this is the Gini coefficient or Gini index which is a statistical measure of distribution developed by Italian statistician Corrado Gini in 1912.

As I have mentioned before nature has a way of balancing the forces that operate these natural systems towards equilibrium. The stock market is of those systems and when a system grows too much too quick it becomes unsustainable therefore the self-corrective mechanisms that are well established in nature will work towards creating stability so that growth or progress can continue and maintain a positive trajectory into the future.

Inequality comes in many forms for example these recent movements which include LGBTQ, Me too, climate change and fair work rights should serve to highlight the need to return back towards equilibrium. This begs the questions why is it that every so often throughout history these pandemics, scandal and movements occur during these particular turning points of these cycles? Are they also part of the natural systems which assist in the self-correcting process?

A lot of the times these things start off in a subtle manner and then slowly build over time until they reach a tipping point. Take for example the boiling frog experiment, the premise is that if a frog is put suddenly into boiling water, it will jump out, but if the frog is put in tepid water which is then brought to a boil slowly, it will not perceive the danger and will be cooked to death.

All this just tells me that this too shall pass and then in a blink of an eye the cycle will start all over again.

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