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The Life Cycle Hypothesis - Groundbreaking research into the regular rhythms and recurring patterns that underpin financial markets, the economy and human life (Paperback)
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The Life Cycle Hypothesis - Groundbreaking research into the regular rhythms and recurring patterns that underpin financial markets, the economy and human life (Paperback)
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The Life Cycle Hypothesis provides evidence of an ordered process
behind the apparent randomness of financial asset price movements,
economic fluctuations, and social trends. It shows how genuine
information will have a dramatic effect on any system into which it
is inserted, and will generate reactions that are essentially
pre-programmed. These reactions involve the processes of advance
and decline, and therefore embrace a set of specific lower-order
fluctuations. Financial and economic analysts have long been
familiar with the resulting phenomena, but have had difficulty
providing a satisfactory explanation. The Life Cycle Hypothesis
builds on the findings of Tony Plummer's previous book, The Law of
Vibration, and shows that nature itself contains the answer. There
is a universal blueprint that manages growth, that organises
evolution, and that contends with decline. In effect, the shock of
fresh information creates a new organism whose energy travels along
a natural pathway between birth and death. It is this pathway that
generates such widely diverse phenomena as personal mid-life
crises, the swarming of innovations, recurring patterns in
financial markets, and rhythmic oscillations in national economies.
It is this pathway that produced the Great Depression of the 1930s,
the inflation trauma of the 1970s, and the global financial crisis
of 2007-08. The same pathway now suggests that there may be a major
global crisis in the early years of the next decade. The Life Cycle
Hypothesis has the potential to change the way that we understand
the world. It will therefore have a natural appeal for investors,
economists, and social scientists. It will also be of great
interest to those who sense a connection between the diverse social
and political upheavals that are currently impacting us, and who
want to understand the forces at work.
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