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Earthquake theory: does it apply to the economy or the stock market?

The aftershock theory. Call it second wave or whatever. It has been very successfully exploited in the stock market, especially during deep crises. It looks like it also applies in this economy - the ups and downs typical of wave oscillations. What do you think? Do we have economists testing "wave" models?

Replies to This Discussion

Permalink Reply by Vincent Granville on November 7, 2010 at 2:32pm

You mean second wave = second dip of a double dip recession?

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