Most investors automatically assume that the answer is NO. For instance, Past stock-market performance tells you nothing about future results — literally nothing
My response, if they “find no relationship between historical five-year returns and subsequent 12-month returns”, they are not working hard enough. It is a lot easier to just say the S&P is going to 2,200 by the end of they year, than it is to actually run calculations. Here is how the stock market really works…..
The markets being, at minimum, a 3-Dimensional phenomena, exactly like a large molecule rotating in space, in and out of the Z plane, with DNA coding sequences governing the entire process. Without understanding that the market is 3-D, twisting like a plant governed by the phyllotactic laws of dual number series and harmonic composition and decomposition, all measurements taken on a 2-D chart become misleading.
Point being, the stock market is not some randomly generated metric that chaos theory tries to explain. It is a mathematically exact entity that baffles the mind. And if you are willing to do the hard work, sooner or later, you will figure out exactly how it works. The explanation above gets you there half way.
