Sunday, July 22, 2018

Reflexivity in Economics

If you are not already aware, the English language, and probably most languages, are complex and massive, full understanding of the meaning of words used to express experiences, feelings, emotions may take quite some time.

Here is a small concept that I thought may be important to take into consideration for anyone out there who is interested in investing or making money. This factor can and most likely will influence investments and their environments now and/or in the future.

Reflexivity in Economics

This part seems important to me:

Within economics, reflexivity refers to the self-reinforcing effect of market sentiment, whereby rising prices attract buyers whose actions drive prices higher still until the process becomes unsustainable. This is an instance of a positive feedback loop. The same process can operate in reverse leading to a catastrophic collapse in prices. 

I learned about this concept from this book by George Soros...

Before you go full metal conspiracy on me, I would like to add that I take information from ALL sources, look at the facts, try to understand all sides involved and attempt to come to a conclusion from all this information, I am human, I do make mistakes, and I will try to learn from them and continue on in the best manner I can.

Some of you out there do not like George Soros for your various reasons, and I respect your rights to freely believe whatever you want, I also choose to exercise my freedom to read whatever the hell I want and see what has helped to make some people BILLIONAIRES.

I guess a post on Toleration is in order... Stay tuned.

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