The Boom Bust Model by Soros
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 condition is firmly established. 5. […]
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