Fake news can have real consequences - lies move markets as well as the truth does, as we were reminded with the recent "fake news" footage of an explosion at the pentagon that never happened, but none the less caused a 500 billion dollar market move to try snd profit off before the truth finally caught up with the lies . But. Also. Playing the catching a falling knife game, trying to "disaster loot" and short sell other people's problems is also a very, very dangerous game.
This year I've been speaking a lot about how our expectations shape our reality - and how whether we choose to invest in more of what we want more of, or to hedge against disaster - we tend to get more of what we bet on. Pleasure or pain; strength, success or pain and chaos.
Anyway, fake news is here to stay. So are all those tasty arbitrage profit opportunities both real and imaginary crises open up. But just remember, we get more of the games we play...
Why are we so "mimetic"?
Where do you see us inadvertently increasing chaos and entropy - investing in disaster - while telling ourselves we're just "hedging our bets"?
Where are you investing your time and capital - in more of what you want, or (by revealed preference) by investing AGAINST the future you think you want?
Have you fallen for a fake news panic? (And how will you clam yourself into only responding when facts have been established? - Can you control the fear and FOMO? (It's hard!)
Read more:
It’s real enough if it moves men and markets : https://apnews.com/article/pentagon-explosion-misinformation-stock-market-ai-96f534c790872fde67012ee81b5ed6a4
Great Expectations : https://www.fluxtrends.com/category/corporate-trend-briefings/
Laughing all the way to the bank at others’ pain : https://prospect.org/power/gamestop-mess-exposes-the-naked-short-selling-scam/
We’re all sheep :
Fear, FOMO and the stock market