The New York Times

A High-Priced Market, but Low-Grade Worries

Canny stock investors are like judges in a quirky beauty contest. They aren’t looking for real beauty but for qualities that other people believe still other people will find beautiful.

That was the observation of John Maynard Keynes, who suggested that investors do not actually make money by picking the best companies, but by picking stocks that waves of other traders will want to buy.

Investing, in other words, is an exercise in mass psychology.

I’ve spent decades studying it, and believe that one way to predict future market moves is to sort through the narratives that sweep through the population and influence decisions on whether to buy or sell. Such an analysis is a matter of art as much

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