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IIRC, something that is reflexive, according to soros, feeds back on itself.
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Another example of this is the crash of 1987.
This article is the best I could find to explain it and it's just so-so. Essentially my understanding is that if the market declines, portfolio insurance would involve writing puts against the the S&P 500. The put buyers would sell S&P 500 shares to hedge their exposure, driving the S&P 500 price down further, forcing the automated portfolio insurance systems to write more puts and buyers to sell more shares, etc. driving the market down in an enormous spiral of destruction.