Pivot Point December

As @RichardLeighton reminded us this week, 2022 for most market participants has been the equivalent of Queen Elizabeth’s famous “annus horribilis”.  In 1992, against a steady stream scandalous tabloid fodder, the Queen famously endured the marital separation of three of her four children, the release of Princess Diana’s biography and the catastrophic fire at her beloved Windsor Palace, where she was buried.

Like the late Queen, the year we planned last December hasn’t quite unfolded in the way we anticipated. While we anxiously await some positive news from the Fed, we should remember we can only control what is in our control. Investors, too, are probably feeling restless and anxious and at this late point in the year, fatigued. This is the ideal catalyst for tapping into the positive “feel good” vibes of storytelling.

For millennia, good stories keep us focused and arouse our sense of curiosity, especially in times of uncertainty. Stories, according to findings by neuroscience researcher Paul Zak, cause our brain to produce oxytocin, a chemical related to empathy, trust and cooperation that relaxes us.

Think about the “why” of what your company does, not the “what”. Lean into what your company can offer stakeholders that your competitors cannot. The story should be human-centered, about real people, not about data or metrics. Our brains are naturally hardwired to connect with narratives about people vs. cold statistics.

What may really matter to the market right now are near-term major catalysts or your MOAT. Or, perhaps it’s regulatory pressures. Whatever the catalyst, find it and use it creatively in such a way that adds color and grounds the opportunity. Bonus point: storytelling is also one of the best cures for stress.  

Here’s the 3-step equity story formula we use at Harbor Access:

Valuation = company story (breaks, shift or change) + proof (social, customers or market validation) + numbers (up, down or unchanged)