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Last time we looked at how 3 features revealed value in stocks. But, stockholders do not limit themselves to some fixed number of features in their collection buying decisions. Here, the market considers at least 4 features simultaneously. It entertains 1) book value per share on one horizontal axis, 2) market capitalization on the other, […]
In every market, buyers determine Value, the sustainable prices for products based on their features. This phenomenon is never more evident than in stock markets. Consider the S&P 500 from one day in July 2019, as shown below. After filtering out those stocks with negative figures for book values, earnings per share, and returns on […]
Last time we tackled Value as sustainable Prices based on product Features, shown in Value Space. There, 2 Valued Features, horizontal dimensions 1 & 2, drive Value, which determines Price, vertical dimension 3. We earlier depicted Demand with a horizontal Quantity dimension 4 and the same Price dimension 3. Last week we showed how the […]
Price formation often seems steeped in mystery. “Seeing what the market will bear” is a mantra for many, but why would we want to leave prices to chance if we could avoid it? What supported the prices for 2013 electric cars? As shown below, we could make a statistically significant (9.3E-09) estimate of prices using […]
Well, that’s an odd title, I’ll grant you that. Really, what we’re addressing here is the demand for fiat currency. Recall in previous posts we found Demand Frontiers for multiple markets. Sometimes these curves have breaks. Such is the case for fiat currencies. As shown in the diagram, this market has an Upper Demand Frontier […]
I posed these questions last time: Which two countries are these? Argentina and Australia. Where do they touch? Yes, this is a trick question. Nothing touches Australia. However, both Australia and Argentina have claims on Antarctica. They touch at the South Pole. The Earth’s axis marks the common line that divides their respective air spaces […]
Modern economics gets inspiration from thermodynamics, constantly looking for the equilibriums such systems demonstrate. Multidimensional Economics has a different point of origin. Consider the maps below and the three questions that follow. Which two countries are these? Where do they touch? Why does it matter? Look to the next post for the answers. #demandforecasting #prices
In the last few posts, we’ve been examining Demand Frontiers. You might ask, “What is the point of doing that?” Well, let’s look. Recall in the last post, we found the Demand Frontier moved little in 20 years. In 2016, the Demand Frontier had an equation describing the line running from the upper left to […]
Markets change. Demand Frontiers depict the limits of markets to absorb products based on their prices to the quantities purchased. While some markets change rapidly (cell phones, flatscreen televisions, computers, etc.), others, especially at their limits, are slow to respond. The market for fighters and bombers is such a market. At its Demand Frontier, this […]
The circles in the last post represent the outermost quantity-price points for the bomber market. We call the line of best fit through them the Demand Frontier. Demand Frontiers form for all mature markets. They move as the products that form them change their quantities sold or prices. What does this Demand Frontier reveal about […]