Subject:
irrationality axiom An axiom of Capital Flow Analysis (developed by John Oswin Schroy) that “Market players have reasons for buying and selling investment assets, but these reasons are not always ‘economically rational’ and change from time to time.
People have many motives for trading in the capital markets that are not related to maximization of financial wealth, the choice between consumption and spending, or logical expectations of future returns.” (Source: Center for Capital Flow Analysis)
Fat-Finger Thursday:
By John Schroy, on May 10th, 2010 | 
On May 6, 2010, the Dow Jones Stock Index, at about 2:30 PM, fell almost one thousand points, before recovering when traders discovered that there was no real news justifying the crash in prices. The day will forever be know as ‘Fat-Finger Thursday’, in remembrance of the first inclination to blame the crash on supposed mistaken data entry by some trader, somewhere. Later, the authorities came out and declared that there was no “fat finger”, but that the cause for the anomaly was unknown and under investigation.
Stock buybacks 2005
By John Schroy, on March 22nd, 2006 | Comments are closed 
A careful examination of the flow of fund accounts for 2005 suggests that probably not more than ten to twenty percent of proceeds from the exercise of stock options were channeled back into the stock market. In order for ordinary investors to benefit from the buyback option programs, they would have to sell 3.5% of their indirect holdings in equities and put the money elsewhere.
Without doubt, such sudden ‘rational behavior’ would crash the stock market.
Research notes
By John Schroy, on October 23rd, 2004 | 
Capital Flow Analysis is a technique for interpreting flow of funds accounts developed by John Oswin Schroy over the period 1998-2004 and published on the website, “Center for Capital Flow Analysis”.
This article provides background notes that describe how, where, and by whom the methods of Capital Flow Analysis were developed.
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