financial markets never reflect the underlying reality accurately

The currently prevailing paradigm, namely that financial markets tend towards equilibrium, is both false and misleading; our current troubles can be largely attributed to the fact that the international financial system has been developed on the basis of that paradigm. The new paradigm I am proposing differs from the old one in two important respects. First, I contend that financial markets never reflect the underlying reality accurately; they always distort it in some way or another and the distortions find expression in market prices. Second, those distortions can, occasionally, find ways to affect the fundamentals that market prices are supposed to reflect.

Soros, George. The Crash of 2008 and What it Means: The New Paradigm for Financial Markets . PublicAffairs.