There are a LOT of examples of things that mostly fit this shape, and it’s understandable if you add to the random walk theory the fact that the feedback loop takes time, and humans tend to overreact. Many systems with delayed feedback and naive reactions have cyclic rather than static equilibria.
That said, from what I can tell, it’s more about explaining past events, and fitting into a theory, than about predicting future events—I haven’t seen many great successes in using the theory to make correct decisions.
There are a LOT of examples of things that mostly fit this shape, and it’s understandable if you add to the random walk theory the fact that the feedback loop takes time, and humans tend to overreact. Many systems with delayed feedback and naive reactions have cyclic rather than static equilibria.
That said, from what I can tell, it’s more about explaining past events, and fitting into a theory, than about predicting future events—I haven’t seen many great successes in using the theory to make correct decisions.