Stock market meets physics: 5 laws that explain why prices move the way they do
- Posted on December 20, 2025
- By Business News Today
- 6 Views
Stock market meets physics: 5 laws that explain why prices move the way they do
Ambit Capital has drawn parallels between stock markets and classical physics, outlining five laws that explain price behaviour. From inertia and momentum to mean reversion and valuation resistance, the framework helps investors decode why some stocks outperform while others stagnate, and why rich valuations often cap long-term returns.