Valeant Pharmaceuticals (VRX) Reflexive Behavior In Financial Markets: GS

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Rupert Hargreaves
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Updated on

While all the news is about today’s conference call, Goldman takes a look at last week’s ‘crisis’. The 35% plunge in Valeant Pharmaceuticals is a classic example of reflexive behavior in financial markets, according to Goldman Sachs. In a research note issued to clients at the end of last week and reviewed by ValueWalk, Goldman concludes that Valeant’s plunge is a perfect example of George Soros’ concept of reflexive financial markets, as described in his book, The Alchemy of Finance: Reading the Mind of the Market (1987). Originally conceived by William Thomas in the 1920s, and later refined by George Soros, Reflexivity Theory is…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk