The Emergence of Bull and Bear Dynamics in a Nonlinear Model of Interacting Markets

Figure 13

Homoclinic bifurcation of 𝑂 and final bifurcation. In (a), we take 𝑒=4.3, while in (b) 𝑒=4.893. The points that will be involved in the contact between the strange attractor and the basin boundary can easily be guessed. In (c) and (d) we represent the dynamics of the state variables 𝑥 and 𝑦 in the time domain, switching between bull and bear markets, for 𝑒=4.75.

(a)

(b)

(c)

(d)