I put out a report a few months ago entitled “Reflexivity.” I know most people don’t know what the heck that terms means, so here is a brief description of what I mean when I use that term.
It is a term that I first ran across while reading George Soros’ book “The Alchemy of Finance.” It is essentially a human behavioral phenomena where by people’s actions are influenced by their beliefs and their actions build off of each other to influence the markets. It has the impact of extending trends and taking things to extremes within markets. The results of Reflexive Markets could be seen at the end of the Tech Boom of the 1990s and the market’s collapse at the end of 2008.
Read the full report: Path to Reflexivity