Hundreds of years ago, people thought the world was flat. Science soon said otherwise. Yet, jokers and fear-mongers kept the myth alive for years.Today, people think the economy and the stock market are connected. They think that because we’re facing record unemployment and business closures, stocks have to fall.That’s a flat Earth fallacy. Economic science says stocks and the economy aren’t closely related. They’re more like distant cousins. But the media loves flat-Earth stories…because it draws viewership and fear (and to be fair, the financial media isn’t trained in this stuff).
Here’s the truth:
The stock market is not the economy.
And the economy is not the stock market.
In this webinar on Thursday, May 21st, I’ll use simple stories to demystify behavioural science and economics. Mark Chahwan, from Sarwa will be my host. Please register now so you can join us.