I like it, the theory and research is sound enough for me to keep it in the back of my mind while calculating decisions.
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I like it, the theory and research is sound enough for me to keep it in the back of my mind while calculating decisions.
I think it's always a good idea to try to be on the side (bias) with the highest odds of being correct and that's where a model like this, that has a provably high statistical significance, is useful, IMO.
It can tell us with a relatively high degree of certainty what range of prices we can expect at X time in the future. There's no way to know for sure that price will continue to have this relationship to the logarithmic regression line, but it HAS had a strong relationship with it so far (as indicated by the r-squared value) and the data so far suggests that this relationship (and the patterns that come out of it) is still in play.