The greater the uncertainty, the more people are influenced by the market trends; and the greater the influence of trend following speculation, the more uncertain the situation becomes.
About this quote
- What does it mean?
- Uncertainty drives trend following which increases uncertainty further.
- In plain terms
- People follow trends when unsure and this makes things even more uncertain.
- What can you take from it?
- Speculation can amplify market uncertainty in a feedback loop.
Where it applies
Putting it to work
Questions to consider
- Why do people follow trends?
- Is uncertainty controllable in markets?
Another view
Not all market movement is driven by trend following speculation.
More from George Soros
The goal of competitors is to prevail, not to preserve competition in the markets.
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