Three Cartoons On Markets That Will Make You Smile (And Think)!
Three Cartoons On Markets That Will Make You Smile (And Think)!
Some aspects of the markets are inexplicably ironic that they could be dealt through only humor.
The only thing that is certain in markets is uncertainty.
Yet, people’s desire to understand things by attributing meaning to mostly random events is insatiable.
In this post, I just wanted to remind you that attempting to find dependable rules in the market mostly creates ironic results.
I came across these three cartoons by Bob Mankoff this week and I am impressed by them.
I hope they will put a little smile on your Saturday while also making you think about the nature of the markets.
1. Yesterday Was Yesterday, Today Is Today
Unfortunately, this is not the original name of the cartoon. I had to name it myself because I couldn’t find the original name given to it by the artist Bernard Schoenbaum.
This cartoon reminds me the observation Nassim Taleb makes about the narrative fallacy in his book “Black Swan”:
We harbor a crippling dislike for the abstract.
One day in December 2003, when Saddam Hussein was captured, Bloomberg News flashed the following headline at 13:01: U.S TREASURIES RISE; HUSSEIN CAPTURE MAY NOT CURB TERRORISM.
Whenever there is a market move, the news media feel obligated to give the “reason.” Half an hour later, they had to issue a new headline. As these U.S. Treasury bonds fell in price (they fluctuate all day long, so there was nothing special about that), Bloomberg News had a new reason for the fall: Saddam’s capture (the same Saddam). At 13:31 they issued the next bulletin: U.S. TREASURIES FALL; HUSSEIN CAPTURE BOOSTS ALLURE OF RISKY ASSETS.
-Nassim Taleb, Black Swan
Something to think about…
2. Salary Cap On Wall Street
This is one of the best ones by Bob Bankoff.
Remember, Wall Street is not your best friend.
It’s composed of real people who want to make money for themselves more than they want to make it for you.
Most analysts behind the research papers don’t have a skin in the game.
Do you really want to follow them?
3. On Wall Street Today
Another great one by Bob Mankoff.
This also dwells on the narrative fallacy but also reminds you that macroeconomic forecasting is a loser’s game. It's a vicious cycle. Good events prepare the ground for bad events and vice versa and this keeps on and on and on. If you depend on them, you can’t make any good decisions.
Always remember, investing is a very different discipline from economic forecasting.
Saw the last one on Howard Mark's letter. Great piece!
plus all 3 cartoons made me chuckle out loud!