Stock Stories
As traders look for signals amongst the noise to support their investment case, Strategy Director Dan Perry wonders whether archetypal narrative structures are the key to understanding investment opportunities.
By Dan Perry on Monday 13 October 2025
Investors and traders have long studied the patterns of their holdings’ rises and falls in the displays of their Bloomberg terminals, looking for meaningful signals in the noise of stock chart patterns.
But what if there were a more human, narratively compelling way to interpret these shapes?
As we all know, past performance is no predictor of future returns, so when we invest in the market what we’re really investing in is a story. A story ‘based on real events’, sure; but speculative fiction nonetheless.
Now, if Kurt Vonnegut is to be believed, there are a finite number of ‘Story Shapes’ that humanity has returned to time and again over generations because they’re so compelling.
By bringing together these two themes we can create ‘Tales of the Market’ i.e. performance indicators as told by the classic story structures / archetypes of different genres of movie to help investors understand what might be in store for them.
Here’s three illustrative examples:
Rags to Riches / Fairy Tales
A Cinderella-esque tale of an overlooked, underappreciated asset suffering through the doldrums, rising from humble beginnings and finally getting the recognition it deserves.
Popular among Value investors waiting for their prince to come.
From Bad to Worse / Horror
A share showing the kind of volatility best described as ‘frequent jump scares’, which mirror the EKG of the investor holding these assets. A sense of foreboding creeps in as you watch the descent, and you’re left with the creeping sensation that the call options are coming from inside the house.
Popular among Day Traders looking for an adrenaline rush.
Boy meets Girl* / Rom Com
A stock that has been consistently plodding along suddenly experiences a rapid series of ups and downs, initial excitement followed by deep disappointment. Then, just when things seem at their lowest ebb, there’s a strong rally that pushes the asset to new heights.
Popular among investors who believe that Quality ultimately shines through.
*It could also be Girl meets Boy, Boy meets Boy, Girl meets Girl, or Non-binary. Love is love.
For ideas on how to tell your own compelling, persuasive stories you know where to find us.
