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If we add greater uncertainty, as reflected by the distribution of the new normal, to the mix, then the difficulty of investing based upon economic forecasts is likely to be squared!
FORBES: Forget New Normal, Old Rules Are Alive And Well
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To see what was going on, Dr Hansen superimposed the actual curves for each decade from the fifties to the noughties on a normal distribution, which acted as a reference curve.
ECONOMIST: Climate change
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It used to be that Wall Street was functioning on the basic idea that financial events were subject to something very like a normal distribution, also known as a bell curve.
FORBES: Christmas, Kurtosis, Fat Tails, Black Swans And Risk Management, Pt. 2
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Since both are affected by gravity they are attracted to each other, so the distribution of normal, visible matter acts as a proxy for the distribution of dark matter.
ECONOMIST: Astronomy