A Narrative for Every Season
Following Donald Trump's surprise victory and the ensuing violent market reaction, left many investors scratching their heads. The consensus narrative warned that a Trump victory would spell doom for the markets with markets possibly down 10% or more. Within hours of the surprising outcome, the narrative flipped and Trump's economic policies, all of which were known prior to the election, were deemed beneficial for share prices.
In " A Narrative for Every Season " we evaluate the themes we see day-to-day and how they not only tell a story, true or false, but provide comfort and, importantly, a sense of control. We then explore the current market narrative calling Trump's victory bullish for equity markets. We hope to raise the level of cognizance surrounding the influence of narratives, evaluate the worldview that different narratives reflect and offer a basis that will assist investors in judging whether the current market reaction is justified.
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