| In Book 1, when commenting the long run history of the Dow Jones index since 1884, we have mentioned that the index is never following an average growth of about 6% per year.
In fact, it is either super-exponentially accelerating or crashing. As discussed in Book 1, it is a very general property of financial products. Another illustration is presented on figure 1 below with the graph for the Hong-Kong main stock index from 1970 to 2000. We observe again a succession of accelerations followed by crashes, with a global positive evolution in time over a 30 years period...
|
