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John Authers: Is this market story fact or fiction?

By John Authers, Investment Editor

Published: February 1 2008 12:38 | Last updated: February 1 2008 12:38

We are all burdened with an instinct not to let the facts get in the way of a good story. Psychologists tell us that humans have an in-built predisposition to explain the world in terms of stories, and to try to fit disparate facts into an overarching narrative.

At one level, this is how scientific research happens. At another level, this is how history is written. The battle of ideas tends to be a battle of rival stories.

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