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How Stories Drive Financial Behavior--and What to Do About It

Reaching financial prosperity can start by becoming the hero of your own financial narrative.

Six months ago, I had never heard the term “double-bottom.” Now, after seeing an Internet meme predicting such an event--a phenomenon in which a stock or index hits an extreme low a second time (resembling the two bottom points in the letter “W”)--I’m half-expecting to see my retirement savings shrink back to March levels, or worse.

I know better than to make rash decisions with my long-term investments based on an unsolicited infographic, but even experts have to be on guard against the persuasive power of a simple, emotionally charged story.