Brexit: the Most Likely Future Scenario

The laws of systemantics apply to highly complex systems and situations. As you read these laws think of the EU and of the recently celebrated Brexit.   Le Chatelier’s Principle: Complex systems tend to oppose their own proper function. As systems grow in complexity, they tend to oppose their stated function. A complex system cannot be…

Index Complexity – Science Confirms Intuition

Which of these US market indices is the most complex: DJI, NASDAQ or the S&P? Surely, it is the NASDAQ because it is full of tech stocks. The DJI, being based on what we would call the real economy, is quite the opposite, more suited for investors who are less risk-hungry. The S&P clearly lies somewhere in the…

Who Rates Ratings?

  The economy is a dynamic system which is far too complex for us to understand. Human nature is extremely complex and billions of irrational humans form the economy. How can such a system ever be thought to be efficient, in equilibrium and stable, as many prominent economists have claimed? But this system, like every…

Rating the Resilience of Major Markets, 31-st December, 2015

Resilience Ratings of major markets are reported in the table below. Analysis performed on 31/12/2015. The results are presented without comments.     Resilience is the capacity to absorb shocks or destabilizing events, such as financial contagion, stock market collapses, market bubbles, natural disasters or geopolitical events. Opposite of fragility, resilience provides an indication of…

How Sustainable is the World as a System?

Corporate sustainability, social responsibility and sustainability in general are trendy subjects nowadays. There exist numerous programmes, institutes and research centers dedicated to the subject of sustainability. One aspect such initiatives have in common is that they don’t provide measures of sustainability. On some occasions an index or a score is defined, whereby experts in different…