The Recent Equities Sell-Off: Our Thoughts And Evidence To Boot

The Recent Equities Sell-Off: Our Thoughts And Evidence To Boot by Stan Altshuller, Novus

Story time

People love stories. Since childhood we are drawn to clear causal relationships where a set of actions lead to a plausible outcome. Birds ate the breadcrumbs so the children were lost in the woods; she was bruised by a pea under her mattress so she must be a princess. Humans are inclined to automatically link cause and effect, it’s pleasing to understand the “why”. Investors are no different (we are only human after all) and these days everyone looks for logical explanations for occurrences that surprise us. The last six weeks have been a good example. Investors in global equities...