Crowds Quote by George Soros
“When a long-term trend loses it’s momentum, short-term volatility tends to rise. It is easy to see why that should be so: the trend-following crowd is disoriented.”
About This Quote
Source Speech: Market Commentary, George Soros, 1998
When a trend slows, investors lose direction, causing price swings to increase.
In simple terms: Trend loss leads to volatility.
Key Takeaway
Watch for volatility when trends weaken.
Themes
finance
market dynamics
behavioral economics
Mood
cautious
analytical
Type
financial
observational
When to use this quote
- portfolio rebalancing
- risk assessment
- trading strategy
- investment timing
Key Concepts
trend following
crowd psychology
liquidity
risk management
Questions to Reflect On
- How do you identify genuine trend weakening?
- What safeguards can you add to trading plans?
A Different Perspective
Trend signals may be delayed, causing premature reactions.
![“I very often used to get backaches due to the fact that I was wrong. Whenever you are wrong you have to fight or [take] flight. When [I] make the decision, the backache goes away.” quote by George Soros](https://sms4smile.com/quotes/img-quotes/d1e/george-soros-1593_backache_i-very-often-used-to-get-backaches-due-t_38205.jpg)
![“We [at Soros Fund Management] use options and more exotic derivatives sparingly. We try to catch new trends early and in later stages we try to catch trend reversals. Therefore, we tend to stabilize rather than destabilize the market. We are not doing this as a public service. It is our style of…” quote by George Soros](https://sms4smile.com/quotes/img-quotes/f33/george-soros-1593_customer_we-at-soros-fund-management-use-options_113322.jpg)
