Blog: Market Signal vs. Noise
Dealing with market noise is harder than it looks.

Economic policy uncertainty is dominating the markets as well as the actual running of businesses, as I've previously discussed. So among market pundits there's been significant effort to distinguish between the deluge of misinformed opinions and what's actually going on. In a classic sense its an effort to separate the signal from the noise.
Unfortunately, most analysts focus on one type of noise, additive noise. But there is another type of noise called system noise. System noise is more consistent with behavioral issues, so I thought it would be useful to distinguish between these two. I addressed this from an analytical standpoint in Fractal Market Analysis for those interested in more of a deep dive.