2011 Top Ten: 1. Physicists could become tomorrow’s leading economic forecasters

Unlike mainstream economists, who rely on averages, econophysicists study complex systems, feedback loops, cascading effects, irrational decision making, and other destabilizing influences, which may help them to foresee economic upheavals.

For instance, researchers exploring a variety of complex networks claim to have discovered strange similarities between the functioning of the stock market, the Arctic, and the human brain. Many complex systems—including market exchanges, animal populations, and ecosystems—exhibit identifiable "early warning" behaviors prior to big disruptive shifts like crashes, according to a 2009 paper published in the journal Nature.

Comments

Complexity of Chaos in Free Markets and Physicists Considered

Regarding forecast number one, although this is a potential eventuality - I think I might disagree, and yes, I too have read all the papers on this, along with the MIT speeches, and the famous Canadian Mathematician economist. But still, it seems the Quants are back-peddling, and had not made such stellar returns as of late. Now there most likely will be a resurgence of quant hedge funds, surely there will be, but I'd hold short on this prediction. And yes, I have taken into consideration all the AI supercomputer advances which might lead one to believe this future reality, but it's too soon to make that prediction, I stand in disagreement on number one. I recommend reading the book "Quants" and looking up several of the recent articles in the WSJ on this topic – last 6-months or so.

Lance Winslow
Founder
Online Think Tank
www.WorldThinkTank.net