A random walk describes movement that does not follow deterministic rules. In financial markets, stock prices may show chaotic behavior and lack dependable patterns. section 8.1.3
This view limits what machine learning can infer from historical price data. Global market interactions and mass psychology make prediction more complex and can turn apparently analytical forecasts into speculation. section 8.1.3 section 8.0
Market prediction
The Mr. Market allegory illustrates emotionally unstable price movements, while irrational exuberance and tulip mania show how collective optimism can produce bubbles. section 8.1.3


