Don't rush to invest: Good Q2 results may help improve sentiment

In financial markets, reflexivity arises when investors see that prices are going up and hence, they start buying, thus driving prices up even further

Reflexivity is an idea that George Soros drew from philosophy, and adapted to explain market sentiment. The philosopher Karl Popper used reflexivity to explain feedback loops that influence and reinforce social situations. 

For example, movies versus real-life. Onscreen behaviour reflects prevailing fashions, social attitudes, musical tastes, etc.  But audiences are influenced by what they watch onscreen, and often adopt fashions and behaviour drawn from the pictures. This is an example of reflexivity - movies and real-life influence each other. 

Cause and effect blur in such reflexive situations. In financial markets, reflexivity arises when investors see that prices are going up