History’s most influential economic thinker, John Maynard Keynes, would be the first to admit that the study of the dismal science contributes far less to the art investment analysis than a degree in psychology.
As noted above, economists get bogged down in traditional theory based on rational behavior, ignoring the fact that humans and markets are irrational. To put it simply, stuff happens. Investors today can add the Iran conflict and hyperscaling of AI to the list of stuff.
The U.S. stock market has been performing well despite the macroeconomic and geopolitical challenges. This illogical price action has always confounded economists and less experienced investors. The money game is never easy. Even the forecasts of Wall Street’s most experienced strategists are swayed by conventional wisdom and front-page news. Successful investing requires independent, long-term thinking. This can be difficult in a market environment driven by algorithmic analysis, mechanical trading, and Keynes’ classic observation – “animal spirits.”
The views expressed in this commentary are those of the author and may not reflect those of the firm. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Withum Wealth Management [“WWM”]), or any non-investment related content made reference to directly or indirectly in the presented material(s) will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from WWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her /their individual situation, he/she/they is/are encouraged to consult with the professional advisor of his/her/their choosing. WWM is neither a law firm nor a certified public accounting firm and no portion of the presented material(s) should be construed as legal, accounting or consulting advice.
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CIO Vantage Point | August 2026
History’s most influential economic thinker, John Maynard Keynes, would be the first to admit that the study of the dismal science contributes far less to the art investment analysis than a degree in psychology. As noted above, economists get bogged down in traditional theory based on rational behavior, ignoring the fact that humans and markets are irrational. To put it simply, stuff happens. Investors today can add the Iran conflict and hyperscaling of AI to the list of stuff.
