Soros's Theory of Reflexivity: The July tech sell-off may ha... - moomoo Community
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The Nasdaq 100 dropped 10% in July 2026 — and Soros's reflexivity idea says the selloff itself may have made the downturn worse by changing investor behavior.
Reflexivity TheoryFeedback LoopsBehavioral FinanceMarket Sentiment
Theory Briefing
- The Nasdaq 100 fell 10% from its peak in July 2026, crossing the threshold that defines a technical correction.
- Soros's reflexivity theory holds that falling prices don't just reflect reality — they reshape it, as spooked investors pull back and accelerate the very decline they fear.
- A sharp tech selloff is a test case for whether markets are self-correcting or self-reinforcing — reflexivity argues the latter.
- The framing raises the question of whether the July drop was driven by fundamentals or by a feedback loop between prices and investor perception.