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Stock market meets physics: 5 laws that explain why prices move the way they do

Ambit Capital has drawn parallels between markets and classical physics, outlining five laws that explain stock 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.

20 Dec 2025 9:39 am