Posts filed under “Markets”
Act. v. What a financial market supposedly does. As if it were a living creature with a sense of self and volition . . . Depicting a financial market as an athlete sprinting, leaping or cliff diving makes news coverage more exciting than a droning flux of numbers.
The above definition is from “The Devil’s Financial Dictionary,” Jason Zweig’s market-focused version of Ambrose Bierce’s brilliant early 20th-century satire on the meaning of common words.
Zweig cites research by Michael Morris, a professor at Columbia Business School, who wrote (with three other professors) a paper titled “Metaphors and the market: Consequences and preconditions of agent and object metaphors in stock market commentary.” The conclusion: How commentators speak about markets can influence investors’ opinions.
The researchers divided market punditry into two distinctmetaphorical approaches, which they call “agents” and “objects.” Those who employed agent metaphors “describe price movements as action, as the volitional, internally-driven behavior of an animate entity. This type encompasses anthropomorphic description as well as description of the market as like an animal.”
Continues here: Stop Thinking About Markets as if They Were Human
Succinct Summations for the slow Summer week ending July 24th Positives: 1. Weekly jobless claims came in at 255k, the lowest reading since 1973! 2. Existing home sales rose 3.2% in June to an annualized rate of 5.49mm, the fastest pace in more than eight years. 3. Mortgage applications rose 1% w/o/w. 4. Amazon turns…Read More
Assessing the Recent Behavior of Inflation Kevin J. Lansing Inflation has remained below the FOMC’s long-run target of 2% for more than three years. But this sustained undershooting does not yet signal a statistically significant departure from the target once the volatility of monthly inflation rates is taken into account. Furthermore, the empirical Phillips curve…Read More
From Deutsche Bank: A striking feature of my ongoing discussions with clients is that many still believe that as a result of secular stagnation “long rates will never go up”. The problem is that holding onto that view has been expensive for the past seven weeks. Long rates in the US are driven by 1)…Read More
Succinct Summation of Week’s Events: Positives: 1) Multi family housing starts jumped by 111k to 489k, the most since 1988 and permits rose to the highest since 1990. Single family starts though fell by 6k while permits were up by just 6k. 2) The July NAHB home builder sentiment index was 60, 1 pt more…Read More