Dragon King Theory
What is Dragon King Theory?
From predicting earthquakes and forest fires to medical emergencies and financial crises, Dragon King Theory is designed to identify disasters before they take place.
Where have you heard about Dragon King Theory?
While the 2008 global financial crisis came as a surprise to most, it’s believed that with the help of Dragon King Theory economists will be able to spot similar financial bubbles before they burst in the future.
What you need to know about Dragon King Theory.
Dragon King Theory is used to predict phenomenal events that take place when significant changes occur in complex systems. By monitoring and understanding each critical change they can be predicted and perhaps controlled.
Dragon King Theory is often discussed alongside Black Swan Theory, which is the term given to a catastrophic event that is random and altogether unpredictable.
As an investor you should look out for warning signs of instability such as exponential growth and positive feedback. While these factors can make a stock seem highly lucrative, Dragon King Theory can be used to predict that over time growth will become unsustainable and a crash will likely occur.