Reflexivity

  • 11 Oct
    How This Little-Known Theory Could Bring You Outsized Returns

    How This Little-Known Theory Could Bring You Outsized Returns

    • Stock prices haven’t been following fundamentals for 5 years now. The theory of reflexivity is the only one that can explain what’s been going on.
    • The main message is that as long as the trend is strong, don’t fight it, but reinforce it.
    • If you want to know when the current bubble will burst, focus on the twilight zone.



    Introduction

    One of the best traders and investors over the last 50 years has been George Soros. Whether you like him or not, his track record is something to respect and learn from whenever possible.

    In today’s article, I’ll describe his reflexivity theory in a, hopefully, much simpler way than Soros has described it in his book, The Alchemy of Finance. More →