Narratives, the stories we tell around our investments or specific economic or life events, are increasingly recognised as an important driver of investment decisions.
Hi Fran, I try to respond to all comments and emails I get :-)
In my decision-making process I try to use narratives all the time, though it is difficult for me to “measure” the prevailing narrative because I don’t have access to the specialist software needed to do that. But as a research analyst I constantly talk to fund managers across the world and that gives me an idea about the narratives in the market. Then it is up to me to Analyse these narratives fundamentally and see if they make sense. If they don’t then I tend to go against the herd. One narrative that is currently promoted is the one about inflation getting out of control and staying permanently high or even the risk of stagflation. Both are overdone feasts in my view.
Thanks for sharing that Joachim. Loved that you provided an example as well. More importantly, love how you make investments in people by providing helpful responses to their questions. Truly appreciated my friend!!
I realize you probably don’t respond to comments Joachim, but what I’m wondering is how narrative economics factors into your decision making process.
Hi Fran, I try to respond to all comments and emails I get :-)
In my decision-making process I try to use narratives all the time, though it is difficult for me to “measure” the prevailing narrative because I don’t have access to the specialist software needed to do that. But as a research analyst I constantly talk to fund managers across the world and that gives me an idea about the narratives in the market. Then it is up to me to Analyse these narratives fundamentally and see if they make sense. If they don’t then I tend to go against the herd. One narrative that is currently promoted is the one about inflation getting out of control and staying permanently high or even the risk of stagflation. Both are overdone feasts in my view.
Thanks for sharing that Joachim. Loved that you provided an example as well. More importantly, love how you make investments in people by providing helpful responses to their questions. Truly appreciated my friend!!
so...stories create value