Life is a random walk.
Life is autoregressive. Given the conditions for stationarity the past experience in our life decreases exponentially. We lost our old friends and toys as well as our childhood and purity.
Life is a moving average of some error terms. We suddenly cut off the partial effect of the past. In a sense, what we do now is just a special form of the limiting of the sum of what we did.
Life has an arch effect. Happiness tends to follow happiness while the unfortunate never walks alone. That is, we often experience a cluster of similar shocks.
The principal components of people around us are few. Most of us go to the same kind of school, choose the same kind of majors, take the same kind of exam and lead the same kind of life. The correlations are strong and the eigenvalue drops dramatically.
Our reason determines the parameters of our life model and the expectation of our future.
Our passion for life results in the innovation, or the error in our life. It is unexpected and brings us the beauty of uncertainty, like a glimpse at a pretty girl next to us or a bill that we forgot. And this is where we get paid the excess return for taking the risk. Some guys have fat tail and some guys are skewed.
