Perhaps the most majestic law of all that globally drives order into disorder and provides the mechanism to locally ratchet sub systems to lower entropy states is the Second Law of Thermodynamics. If you want to understand system processes including what drives these financial markets, then you really do not need to look any farther.
Despite the Power of the 2nd Law, it rarely gets into the scientific headlines when discussing complex systems. Perhaps it is considered boring….but within this universal mechanism lies the answer to life, the universe and everything.
In fact a very recent controversial theory has taken Ilya Prigogine’s dissipative structures theory to the next level.
Someone who takes this 2nd Law seriously is the wonderful chemist and educator Peter Atkins. Peter is an incredibly gifted presenter that can make the very complex very comprehensible. Once he unpacks the 2nd Law in layman terms, he allows you to stretch far in your understanding of how complex systems work……so without further ado……..welcome to the world of Thermodynamics.
…and some great popular science books from Peter for those that want to know more.
……..and before you all go, just another enthralling investigation into the second law by Sean Carroll. Another favorite scientist of mine.
Now that you have all the answers about what drives complex systems, apply what you have learnt to the financial markets themselves. Not so hard is it?
Trade well and prosper