Reflexivity

I cannot help but wonder what would have happened if David Tepper never went on CNBC a few weeks back. Would stock prices be going up on bad news? He planted the idea that all news is good news because the Fed will print money. Investors have taken the ball and run.

George Soros  introduced the idea of reflexivity where one's actions in markets can change the course of events. I highly doubt Tepper intended to have such a large effect but I cannot help but think that the course of the market might have been different had he not appeared on TV.

6 comments:

IC said...

As I said he has a lot of financials he needs to unload!!!!

Tsachy Mishal said...

Somebody has been unloading the financials. They are a disaster.

Anonymous said...

did you see this article today?

http://www.cnbc.com/id/39575147

Market Owl said...

I think the market would have rallied like this without David Tepper. Give credit to this rally to Bernanke, not David Tepper. No fund manager talking about the market on CNBC can make the stock market go up like this for 2 weeks. Frankly, I never even heard of the guy before he showed up that day. I'm sure I'm not the only one.

Anonymous said...

I agree Owl. I never heard of him. I consider myself an individual investor. I have not and will not trade on 1 persons comments. Kinda ridiculous.

Tsachy Mishal said...

Whether one has heard of him or not does not matter. Before he appeared on CNBC the rallying cry were things are not as bad as feared or there won't be a double dip.

But since his appearance it has become nothing matters because the Fed will print. Its the idea that he started spreading. Maybe this would have become the rallying cry anyway and its just a coincidence.