Why it’s usually crazier than you expect
An article last week referred to this as "reflexivity".<p>* Reflexivity is a theory that positive feedback loops between expectations and economic fundamentals can cause price trends that substantially and persistently deviate from equilibrium prices.<p>* Reflexivity’s primary proponent is George Soros, who credits it with much of his success as an investor.<p>* Soros believes that reflexivity contradicts most of mainstream economic theory.<p><a href="https://www.investopedia.com/terms/r/reflexivity.asp" rel="nofollow">https://www.investopedia.com/terms/r/reflexivity.asp</a> has some additional info.<p>I wonder if there's a way to marry "efficient market hypothesis" with "reflexivity on the edges" somehow.  <i>Well</i> outside my ballywick, in any event.