What is Fractal Market Hypothesis?

The fractal market hypothesis states that (1) a market consists of many investors with different investment horizons, and (2)the information set that is important to each investment horizon is different. As long asthe market maintains this fractal structure, withno characteristic time scale, the market remainsstable. When the market's investment horizonbecomes uniform, the market becomes unstable because everyone is trading based uponthe same information set. Theory due to Ed Peters.