2 thoughts on “Ray on Cashflow-6.7.2011”

  1. […Reflexivity asserts that prices do in fact influence the fundamentals and that these newly-influenced set of fundamentals then proceed to change expectations, thus influencing prices; the process continues in a self-reinforcing pattern. Because the pattern is self-reinforcing, markets tend towards disequilibrium. Sooner or later they reach a point where the sentiment is reversed and negative expectations become self-reinforcing in the downward direction, thereby explaining the familiar pattern of boom and bust cycles…]

    […Billionaire investor George Soros has been an active promoter of the relevance of reflexivity to economics first propounding it publicly in his 1987 book (The Alchemy of Finance: Reading the mind of the Market (1987) by George Soros, pp 27-45). He regards his insights into market behaviour from applying the principle as a major factor in the success of his financial career…]

    http://en.wikipedia.org/wiki/Reflexivity_(social_theory)#cite_note-1

    Looking forwards to the day when what Ray Barros says becomes a self-fulfilling prophecy! 🙂

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