It seems to me that it is possible to depart from the efficient market hypothesis – without claiming that markets are inefficient – as Soros does.

In my view economists should acknowledge that if individual investors have superior models of how particular markets work they may be able to make profits consistently by identifying situations where market prices are either too high or too low according to those models. In the longer term the market is an efficient process for weeding out inferior models of price determination .

To me, the above statement describes the fundamentals Soros writes about. In any free market, there are weak points.

Examples:

1) judges and regulators make arbitrary rulings — investors can’t, without inside knowledge, know where to park there money.
2) the morality of the people can be waning — they could be bribed or mislead others.
3) real operations of corporations and regulators can be hidden from the public; real numbers on goods and services may not be published in quarterly and yearly reports.
4) a huge amount of money can chase one industry, and then sold off quick for profit (aka pump and dump).

Reflexivity, seems to me to be understanding the strengths and weaknesses of the market– and investing accordingly.