Masters in Business Stock Market Stories via the Narrative Machine
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Dec 17, 2025 
Ben Hunt, Founder of Perscient, delves into how narratives shape markets and influence social behavior. He discusses the role of influential storytellers, from Fed chairs to retail influencers, in crafting prescriptive market narratives. Hunt contrasts narrative analysis with sentiment analysis, highlighting the importance of understanding story arcs over mere emotional reactions. He warns about being captured by dominant narratives and emphasizes the need for critical thinking to unveil the underlying motives of these stories.
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Narratives Drive Market Behavior
- Narratives are being used deliberately to shape expectations about policy and markets rather than just explain events.
- If a well-told story gains traction, it changes behavior and can move markets.
Few Actors Seed Big Stories
- A small group of high-attention actors — 'missionaries' — seed stories that many others adopt.
- Missionaries range from central bank chairs to retail influencers like Roaring Kitty and they determine narrative reach.
Fed's Narrative Power Grew From Fiscal Abdication
- The Fed chair became the dominant missionary partly because fiscal authorities stepped back, giving monetary policymakers narrative power.
- That power can ebb when fiscal actors reassert themselves or political actors try to politicize institutions.