Tonis Vaga

BS Electrical Engineering, 1969, Rutgers University and four year starting right wing on the Rutgers Ice Hockey Club.

MS Physics, 1972, Monmouth University where I learned the Ising Model of statistical physics under Dr. Louis Kijewski.

Author of:

"Stock Market Fluctuations," Letters, Physics Today, February 1979 suggested that the stock market was an "open" system that required a continuous flow of money to maintain valuation levels and that at a critical phase transition point the market was highly susceptible to the impact of random noise as illustrated by the October Market Massacre of 1978. This letter was submitted as a comment on Dr. Rolf Landauer's earlier article on the influence of noise on open systems far from equilibrium.

"The Coherent Market Hypothesis," Financial Analysts Journal, Nov/Dec 1990) submitted after presentation of a talk to the New York Society of Quantitative Analysts which introduced the application of statistical physics to finance before the term econophysics had been invented by Dr. Eugene Stanley. Basically proposed that the probability distribution governing market returns changes dramatically as a function of two control parameters: 1. the level of "groupthink" among investors; and 2. the prevailing fundamental bias.

"Profiting From Chaos," McGraw-Hill, 1994 explained how the success of leading market analysts and money managers was consistent with the Coherent Market Hypothesis. Each chapter features a leading money manager's basic strategy and shows how it is supported by nonlinear finance theory.

"Particles at Cutoffs in the Electromagnetic Spectrum," Physics Essays, Volume 14, No. 3, September 2001 finally got this published after having the original "ahah!" my senior year at Rutgers. Introduces a finite difference formulation of Maxwell's Equations for free space, resulting in cutoff frequencies in the frequency domain of the electromagnetic spectrum, and particle behavior at frequencies approaching cutoff. The nonlinear dispersion relationship turns out to be equivalent to the Lorentz transformation of relativity theory. Interesting that while my stock market theory has been cited by research around the world, there has been absolutely no comment on this fundamental physics paper that bridges electromagnetic theory, quantum theory and relativity theory.