This means reflexive thinking is inefficient in the market as it leads to overvolatility, and consequently, asset prices go either over the actual price or undervalued. For instance, at the peak of uncertainty or turbulence in the market, panicking and selling out through reflexive thinking lead to a drop in asset prices to less than the fundamental value. In a bull run of the market,... https://finxl.in/certified-investment-banking-course.html