The DJIA. Resilience:83%
The S&P 500. Resilience: 97%
The NASDAQ Composite. Resilience: 95%
Because of the inter-dependencies that globalization has created, no system acts in isolation and no system should be analyzed in isolation. All systems interact, forming a huge system of systems. To show how this can impact the big picture we have analysed the three markets simultaneously. This is the picture:
DJIA + S&P + NASDAQ. Resilience: 72%
In the above map the first six red nodes correspond to the Dow, the following 6 blue are the S&P, the remaining 6 nodes correspond to the NASDAQ.
The combined markets have a resilience o 72% even though the three markets boast values of 83%, 97% and 95%, with an average of 92%. Surprised? We put together three components, each of which has a resilience greater than 83% and the resulting system has a resilience of 72%! This is a great example of "the whole being actually less than the sum of the parts". So much for linear thinking.