Narrative
In a time of near-zero or negative interest rates, narratives of potential growth receive a lot of bids. Often these occur within a common theme or catalyst that could kickstart that growth.
„Narrative economics, the study of the viral spread of popular narratives that affect economic behavior, can improve our ability to anticipate and prepare for economic events“
Robert J. Shiller. „Narrative Economics.“
He defines an economic narrative as a contagious story that has the potential to change how people make economic decisions.
It is often difficult to quantify a narrative, however, one can often access the direction of an emerging narrative, present narrative, or deflating narrative. I would argue narrative is a leading indicator for adoption and thus could be categories by the same schema as adoption.
Following this from an investment perspective, being early in emerging narratives that play out, in the end, is all you should worry about.
