Blog: The Fractal Market Hypothesis, 30 Years On
While still an "alternate" idea, research continues to support the FMH.
In January 1994 Fractal Market Analysis (FMA), my second book, was published. My first book, Chaos and Order in the Capital Markets, had come out a little over 2 years before, and was very well received. FMA was not a sequel, but a continuation. I saw Chaos and Order as an introduction to chaos theory and fractal statistics for investment practitioners. FMA was intended to introduce practitioners to research methodologies. At the time there was very little available to the investment community along these lines, and I wanted to give access to what I had learned. Then investors could decide whether trying out these new ideas was for them.
The heart of the book was the Fractal Market Hypothesis, the professional achievement of which I am most proud. Even though I've had a 48 year career investing billions of dollars for institutions, if I've left any legacy it will be the FMH.
To commemorate the 30th anniversary of the FMH, I thought I'd talk about it's inception, supporting evidence and future in this week's post.