The Butterfly Effect
The Butterfly Effect:
Otherwise known as the ripple effect, the butterfly effect is the concept that one small gesture or action can generate significant results in the future. All open systems are susceptible to the butterfly effect, and the finance industry is no different. The stock market depends on a number of inputs which are sensitive to human factor, so it is not unreasonable that the stock market of one country is affected by even a minor political gesture made in another.
The butterfly effect has been further amplified over the last 30 years because of Globalization, so much so that financial professionals are now using the butterfly effect to forecast the market. A more recent example of this is the Russian–Ukrainian war causing further rises to inflation rates.
If you are concerned about the recent rising inflation rates, or concerned about how Global events are impacting your pensions and investments, please ring us on 028 4461 7575 to speak to one of our experienced Financial Advisers, who will be able to talk through any queries.
“Butterfly Effect in Investing, Explained” – Mintgenie