Stock Market Volatility and The Wisdom of Crowds

You can’t but wonder these days what’s behind the volatility on Wall St. Every day, I’m tuned into out of sheer curiosity (or spectator’s schadenfreude) to see if the DOW will bounce up 400 points or crash by 400. It seems totally random, indicating only that there is very little consensus, which, I imagine, is a bad thing, although it promises opportunity.

Anyway, I came across this article by New Yorker writer James Surowiecki. I forgot to mention him the other day as one of my favorite voices in the New Yorker. He can convey more economic wisdom on a page than a week’s worth of Wallstreet Journal. I’m also getting ready to start reading his book “The Wisdom of Crowds” which I’ve had on my shelf for some time. Some of the themes in the article above seem to come from the book, and I am curious to learn more about how the instincts and behaviour of crowds influence our way of life.


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