Idea Ripper // ArchiveCards: 1555 [Live] | Updated: 2026-10-14
Card #c1291IR // #c1291Synthesis

"Narrative contagion is the process whereby a story shared by one person or organization prompts others to share their own stories, spreading narrative themes organically through a community." "Markets are social systems, not machines that take in fundamental information and spit out logical prices."

— In our words · Source: Trade Outside the Box (Brent Donnelly)

[Use when]

A story about your industry or company is spreading faster than the facts behind it.

[Why it matters]

Stories start near a truth and then morph into caricatures as more people tell their own versions. Donnelly's example is GameStop, which began with a few Reddit posts. The spread drives sentiment and price. His advice is to watch dispassionately while the crowd goes mad.

More from Trade Outside the Box

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Same situation, different book

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