The articles discuss the reflexive interactions between stock prices, prevailing biases, and underlying trends in the stock market. Author George Soros uses the concept of reflexivity to explain boom/bust cycles in the market. There are unrecognized trends, flaws in perception, self-reinforcing processes in both directions that lead to widening divergence between reality and expectations.
Reflexivity connect stock prices and biases
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Flaws in perceiving fundamentals drives booms and busts
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In conclusion, reflexive interactions between stock prices, biases, and fundamentals are key to understanding boom/bust cycles per Soros’ theory.