Narratives and belief dynamics impact market structure, market behavior, and by extension market risk. For example, belief convergence drives crowding, contagion, and the growing prevalence of passive management. Belief instability drives market volatility. This meeting seeks to examine market risk through the lens of belief dynamics, changing narratives, and market structure.
The first day will focus on mechanisms by which beliefs and narratives propagate among communities. Particular attention will be placed on the mechanisms by which small groups of coordinated actors can exploit new communications technologies to influence the selection of narratives and beliefs among a broader segment of the population. The second day will focus on strategies for incorporating narratives and belief dynamics into models and forecasts of economic and market behavior. This meeting will bring academics studying the above phenomena together with finance practitioners whose expertise include investment crowding and market volatility.
This meeting will take place on Wednesday, October 7 and Thursday, October 8, 2020 and will be co-hosted by UBS.