The Prediction Polka

3+ Source; South Park StudiosIt starts in late November with the early birds. But this week &n
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Mike S
Mike S
1 year ago

We should not be upset that others hide the truth from us, when we hide it so often from ourselves.” –Rochefoucauld Maximes 11

The CEO, the monk and the Christian…And when the CEO gets in the elevator with us, and then a monk on the next floor, the same sorts of things are going on in each of our heads. I say the monk doesn’t get it because he’s abandoned too much that is pleasurable in the this material world. The CEO doesn’t think any of us get it because we don’t have two vacation homes and a yacht. And the Christian looks down at us because they know that Jesus is the answer.

We’re all subscribed to our own little fantasies, and they all result in squirts of pleasure. We like knowing that we’re part of a small group that “gets it”.

Victor K
Victor K
1 year ago
Reply to  Mike S

Cannot recall the source or exact phrasing but “many words have gone by trying to prove that money doesn’t matter” is my antidote to that occasional “gets it” feeling. Cheers!

William Petersen
William Petersen
1 year ago

I’m sure you see the Morgan Creek quarterly letters. Lol

Sanford Rich
1 year ago

Predictions are an attempt to generate transactions. I can remember as a bulge bracket junk bond trader, at a firm I will not disclose, listening to the morning commentary. We would joke about how many hands the economist/strategist/allocator/analyst had and which sentence or two any given salesman would use to drive a trade that sold down our inventory. Scary hilarious mostly because it worked and I imagine still does.

Rafa Mayer
Rafa Mayer
1 year ago

Brands promoting narratives is an ancient practice on this planet. What’s been recently game changing (and accelerating) is the intersection between technology and narrative diffusion. Quid is a truly fascinating platform in this regard. Narratives about narratives. Very meta.

Mike S
Mike S
1 year ago
Reply to  Rafa Mayer

This is why I like to say that a great sales or marketing staff will almost always trump a great investment staff in terms of raising capital from investors. People prefer a good narrative or story to data or analytics.

One of the reasons markets tend to be so volatile is because they trade based more on expectations than fundamentals and investor expectations are often at odds with reality. Much of the financial services industry revolves around expectations management. And when everyone is forced to deal with an unknown future, that expectations management is really more about being a storyteller than anything. –A Wealth of Common Sense

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