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

This article originally appeared in .

You're reading a preview, sign up to read more.

More from The New York Times

The New York Times6 min readTech
10 Tips to Avoid Leaving Tracks Around the Internet
Google and Facebook collect information about us and then sell that data to advertisers. Websites deposit invisible “cookies” onto our computers and then record where we go online. Even our own government has been known to track us. When it comes to
The New York Times6 min read
From Your Mouth to Your Screen, Transcribing Takes the Next Step
(Circuits) Improvements in automatic speech transcription are beginning to have a significant impact on the workplace.
The New York Times7 min read
Ali Wong Is Crossing Lines Again,This Time in a Book
The star of two uproarious Netflix comedy specials is nervous about how people will react to her essay collection. “I hope my siblings don’t get pissed at me,” she says.