We often talk about "narratives" driving markets. But have you ever noticed how those narratives are constructed? They aren't vague. They are incredibly specific.
The Wisdom Bite:
“When you introduce things that most readers have never seen before into a piece of fiction, you have to describe them with as much precise detail as possible.”
The Precision of the Con This is a rule for writing convincing science fiction, but it is also the playbook for selling speculative financial products.
When Wall Street introduces something "most readers have never seen before"—like a new derivative, a SPAC structure, or a complex crypto token—they don't describe it vaguely. They drown you in precise, technical detail. They give you "back-tested data" (which is just fiction written with numbers). They use specific jargon to create a "pseudo-scientific veneer".
This precision creates the illusion of truth. We assume that because something is described with decimal-point accuracy, it must be real. We confuse "precision" with "accuracy."
The Narrative Fallacy We love a good story with rich details. It appeals to our brains. But as we discussed regarding economic modeling, these models are often just "rhetoric... a persuasive undertaking" designed to convince you of a text, not a truth.
The more precise the details of the "New Era" or the "Paradigm Shift," the more you should be on guard. They are building a world for you to inhabit, but that world might not actually exist.
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