Summary

• Narratives can move prices, too, influencing investors beyond “normal” market volatility.
• Perceived risk can overtake actual risk when narratives dominate.
• Hidden narratives can quietly steer investment decisions.

By James Picerno

Are you reacting to market volatility – or stories about it? Both can potentially steer investors off course from their long-term financial goals without careful planning, but one is more subtle and therefore can pose a bigger risk.