Jonah Bergers has writtena new book called Contagious: Why Things Catch On which I am currently reading. I am trating to filter his views throuhg the lens of finance and investing. Why do ideas catch-on in finance? Themes or mems seems to develop in finance. They are usually based on some simple facts but start to take on a broader life. The current rally and talk about a great rotation is a case in point. There are some posiitve numbers but there is also a story for why the market should head lower. The positive story seems to have had a more contagious impact on investors. Is this a CNBC effect?
We have mor etalking heads in finance and they all poin to the same story for why thinsg catch on. Berger uses STEPPS as a simple device or reason for contagion. The combination of
Social currency
Triggers
Emotion
Public exposure
Practical value and
Stories
all create the opportunity for a contagious result. Investing media seems to be a likely place for STEPPS to take hold. I am surprised we have not studied this more.
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