No matter how you slice it, markets are human. This even applies to the “algos” as it’s we who write their mechanistic marching orders. Thus, understanding human behavior can be helpful in assessing and anticipating market moves. There’s no choice in the fact that we all need a philosophy to live. The same holds for investing. Thus, understanding the dominant market philosophies can potentially give us an investing edge. We can thank Tony Greer, the editor of the Morning Navigator, for doing just this.

Greer’s characterization of today’s investment markets as financial postmodernism is as genius as it is obscure. Since mentioning it, I see parallels between today’s investment markets and the postmodern philosophy everywhere. Perhaps teasing out Greer’s identification can help make better sense of these seemingly insane investment conditions. Read More