Accelerated Risk

Stock-price indices are currently volatile because, naturally, there is a reversion to the mean.

The reversion is a function of space over time, which is the formula physics uses to calculate acceleration.

In the world of financial risk, which affects you whether you are a financier or not, risk analysts use stochastic oscillators to understand and project the dimension of risk. MACD is one such oscillator, mapping the movement of averages over time.

When the average goes below a 50-day moving average, it is a signal. Technicians read the sign as indicating the probable direction of asset prices, over time. The probability you will incur the detriment associated with the risk depends on when, which depends on how much time it takes to move from one point to another, or acceleration of the risk.

(Of course, then, to avoid the risk, since it cannot actually be reduced, existing fully assumed in priority, the trick is to determine when it happens, which means it derives from a method yield.)

Global stock markets have lost about $4 trillion in eight days. Since it is a big number in a small amount of time, the risk is highly accelerated; and since a lot of financing derives from creating a spread (the difference in data points over time), the volatility can cause a crisis in a flash. To manage this risk dimension, analysts look for signals that derive from mathematical models, like MACD, which are derived from equivalent values observed in nature, having a predictable value over time.

Managing the risk dimension is complicated by the emergence of artificial intelligence (AI). This accelerates the risk even more and can result in crashes that can happen so fast (in a flash) there is no way to stop it without just pulling the plug.

The method being used to manage the risk dimension derives from accelerating the risk to yield a quick premium — fast money! (The DOW is swinging more than 1000 points today, for example, creating a huge spread in a short amount of time.) The risk premium can be made to emerge as a property of space occupied over time, which is why Wall Street uses math models derived from physics to model it, and thus derive it, which means that whatever happens is fully culpable because its value is deliberately derived, existing on demand (but, at the same time, by means of consolidation, being on command to create big spreads, by fiat, which means its determination intends to be more political than economic).

When the treasury secretary says stock indices are being closely monitored, like Mnuchin said today, it is not to trump-up the extreme data points as a “Trump rally.” It is because the risk dimension is “extremely” out of control. (The risk is going gamma!)

When the risk goes gamma a purely political dimension is attained. Econometrics does not work to mitigate the timing of the risk because the space is politically saturated with the detriment in all the futures now. This can happen, and will happen over time, derived from accelerating the risk.

Accelerating the risk to derive a premium in a shorter and shorter amount of time yields to the gamma-risk dimension on demand. While it creates more profits in less time, at the same time, over time, it fully occupies a political space.

What is otherwise understood to be value methodically derived from the metrics of economic power, brokered through the means of exchange known as financial-derivative markets, in the dark, the risk is becoming fully political in the form of global, economic expansion, derived from the free-market legitimacy of existing on demand.

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About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
This entry was posted in Political-Economy and Philosophy and tagged , , , , , , . Bookmark the permalink.

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