Have Emotions Overtaken Logic?

(Harvest) When we began working in portfolio management, we were excited by the idea that everything happening in the world was reflected in the prices that went by on the ticker tape – economic data, war, peace, elections, and the anticipation of an almost infinite number of factors. The past several months have been astonishing to watch. Beginning with a major surprise in the presidential election and a massive rally in the stock market, we have tried to understand the behavior of participants. We think it is fair to say the country has seen events unfold in ways that would have previously been hard to imagine.

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