A butterfly flapping its wings in China could cause a cyclone in California

The classic version ‘A butterfly flapping its wings in China could cause a cyclone in California’, describes the fact that how a small, seeming unrelated happenings can have major effects on results in a chaotic system. For example if we take stock market movement, a small incidence in China can influence negatively in the stock market of California or elsewhere.

Stock markets are truly chaotic, and, fundamental stock analysis is necessary to understand the forces driving stock-price movements. Any action anywhere in the world can influence phenomena elsewhere as the butterfly that alters its usual pattern of pollen collection can create a different enough wind flow as to ultimately. In September 11, 2001, terrorists were attacked on world trade center in USA, the whole world was stunned. Stock market stumbled all over the world. It was not limited to USA. In the same way, recent economic slowdown which starts from USA gradually affects the other country’s economy.