Abstract

http://ssrn.com/abstract=2405524
 


 



Constructing Conviction through Action and Narrative: How Money Managers Manage Uncertainty and the Consequences for Financial Market Functioning


Kimberly Chong


University College London - Centre for the Study of Decision-Making Uncertainty

David Tuckett


University College London (UCL)

January 1, 2014


Abstract:     
By selecting different financial assets to hold in their portfolios, fund managers determine the allocation of capital in global markets. Recent events have revealed profound uncertainty at the heart of such markets, the manifest existence of emotion, and the way confidence is crucial to orderly market functioning. Using findings from interview studies with fund managers, supported by ethnographic observation, we demonstrate the irreducible cognitive and emotional conflicts which face actors and which threaten their daily operations. We introduce the term conviction narrative to analyse how they manage these conflicts on a day to day basis, and with what collective consequences. Our thesis is that expertise and conviction in financial markets have constantly to be created and renewed through a combination of psychological and social action with the implication at the macro level that while financial markets can be orderly they are so in an intrinsically fragile way.

Number of Pages in PDF File: 42

Keywords: Financial markets, Confidence, Trust, Uncertainty, Interdisciplinarity, Evaluation

JEL Classification: D81, D83, Z13, G12, G11

working papers series





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Date posted: March 9, 2014  

Suggested Citation

Chong, Kimberly and Tuckett, David, Constructing Conviction through Action and Narrative: How Money Managers Manage Uncertainty and the Consequences for Financial Market Functioning (January 1, 2014). Available at SSRN: http://ssrn.com/abstract=2405524 or http://dx.doi.org/10.2139/ssrn.2405524

Contact Information

Kimberly Chong
University College London - Centre for the Study of Decision-Making Uncertainty ( email )
Gower Street
London, WC1 6BT
United Kingdom
David Tuckett (Contact Author)
University College London (UCL) ( email )
Gower Street
London, WC1E 7HU
United Kingdom
HOME PAGE: http://www.ucl.ac.uk/psychoanalysis/unit-staff/david.htm
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