Irresistible ForcesResisting a force without enough sustained energy to resist forever.
Jump in the air
Fall to earth
Freeze an ice cube
Warms to room temperature
Cools to room temperature
Clothes become wet
Clothes dry in the air
Stretch an elastic
Returns to original shape
Return to EquilibriumEquilibrium is the point where competing forces are balanced. Changes that put a system out of equilibrium are likely to be temporary. For example, supply and demand in a market where a sudden spike in demand for a good causes shortages. This change would tend to be temporary as suppliers have incentive to increase supply to meet demand.
Suppliers increase supply to meet demand
Suppliers decrease supply to clear the surplus
Get dizzy or off balance
Recover your balance
Get a cold
Deviation From TrendA process that is strongly running in one direction that temporarily goes in the other direction. For example, the stock of a mismanaged company that is destined to go bankrupt may temporarily go up for a period of time with a long term trend that will drive the stock to zero.
Long Term Trend
Stock market will be much higher in future
Stock market goes down
Company will eventually go bankrupt
Company stock goes up
Air pollution getting worse in a city
Fresh air from a pleasant wind
Regression Toward the MeanRegression toward the mean is the tendency for unusual results to become closer to average with time.
Revision to Mean
Have a bad day
Things get better with time.
Have a good day
Bad days also arrive with time.
Investor dramatically outperforms market
Investors that outperform the market may be lucky or be taking large risks such that their results will be more average in the long term.
Stable SystemsSystems such as a society, machine or organism often have stability built into them. For example, if you are hot your body may sweat to bring down your core temperature.
Overflowing river system
River system eventually drains
Human gets a headache
The body typically tries to return to normal
A society has an economic recession
Policy makers decrease interest rates and flush banks with liquidity to try to stimulate economic activity.
A room becomes cold
An automated heating, cooling and ventilation system begins to heat the room.
Human BehaviorHuman's commonly seek stability and may work to try to undo changes that occur.
Bicycle breaks down
Fired from job
Get a new job