Finance is about expectations and expectations are about stories
The value of stocks, bonds, currencies, commodities depends on expectations and expectations depend on stories.
Expectations are central for the financial system and to harness expectations you need a convincing story.
We build stories regarding macro conditions or companies:
❗Financial analysts are story tellers. Every investment case is a story; their valuation assumptions depend on the story that they build around the company being valued.
❗Policy makers are story tellers. Anchored expectations are the result of successful storytelling.
❗Company leaders are story tellers. They speak about the company's mission, vision and objectives.
✅Some of these people are indeed good at creating the appropriate stories and get commensurable good results.
🧏♀️Some are not:
💣 The ananlysts who become blinded by Excel and standardised models
💣 the managers who fail to act as leaders and motivate, empower and unite people
💣 the policymakers who loose the public's trust
Are you conscious of the stories you tell explicitly or implicitly?
Are you careful to adjust them as time passes?
Our conscious mind is the storyteller. Our unsconsious mind is a story lover. Be purposeful in the stories you tell (including to yourself). Learn about the ways of the mind. Here to help if you need😊