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Insight - Making Sense of the Narrative


Behavioural Finance is about trying to take the emotion out of markets and investing, but markets are narrative machines and it is easy to get caught up in a plausible narrative. One way of countering this effect is to look for the emotionally effective but ultimately misleading use of Logical Fallacies. Here we provide a Bingo Card of the 25 most popular examples as well as an illustration of how a combination of Logical Fallacies can build a bandwagon narrative.