The Boom Bust Model by Soros

Posted by on December 1st, 2008 at 05:30pm

Boycott Novell wrote an interesting post today on
Here’s a quick excerpt
Just something worthy remembering.  A typical boom-bust cycle has eight stages: It starts with a prevailing bias and a prevailing trend, kicking off a reflexive process. 1. The trend is not yet recognized 2. The trend is recognized and reinforced by the prevailing bias.  The process approaches far-from-equilibrium territory. 3.  A period of testing intervene when prices suffer a setback. 4.  If the bias and trend survive the testing, both emerge stronger and the far-from-equilibrium condit

Read the rest of this great post here

Under Uncategorized