Free 7-day Trial
All Articles and Columns »

George Soros Lecture Series and Q&A - The General Theory of Reflexivity

December 26, 2012 | About:
CanadianValue

CanadianValue

207 followers


According to Wikipedia reflexivity is defined as follows:

Reflexivity refers to circular relationships between cause and effect. A reflexive relationship is bidirectional with both the cause and the effect affecting one another in a situation that does not render both functions causes and effects. In sociology, reflexivity therefore comes to mean an act of self-reference where examination or action "bends back on", refers to, and affects the entity instigating the action or examination.

To this extent it commonly refers to the capacity of an agent to recognize forces of socialization and alter their place in the social structure. A low level of reflexivity would result in an individual shaped largely by their environment (or 'society'). A high level of social reflexivity would be defined by an individual shaping their own norms, tastes, politics, desires, and so on. This is similar to the notion of autonomy. (See also: structure and agency, social mobility)

In 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 and the same process operates in reverse leading to a catastrophic collapse in prices.

Soros has been a big proponent of reflexivity, and here is a lecture from him with Q&A discussing the subject and how it impacts investing:



About the author:

CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 2.3/5 (8 votes)

Comments

mocheng
Mocheng premium member - 1 year ago
George Soros made stuff so complicated to understand, I like Warren Buffet much better, he put them in plain english.
vgm
Vgm - 1 year ago
Mocheng,

I totally agree. Soros likes to appear erudite, sophisticated. Like in academics, only the best of the best have the confidence and grasp of their subject to be capable of simplifying for easy digestion, without losing accuracy. Buffett does it naturally. The irony is that Soros is saying nothing new, despite his elaborate language.

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide