Nike Stocks Fell 2% Because of a Shoe
Are all decisions ultimately emotional?
If you need any proof that people react to things emotionally no matter what a rational appraisal of the situation says you need only look at the events surrounding the injury of Duke basketball star Zion Williamson on Wednesday night as the result of a Nike shoe blowout.
Nothing in American life is more of a mixed bag of emotion and rational analysis than the stock market. As an excited crowd that included former President Barack Obama watched Zion Williamson’s shoe shred in real time, Nike stock dropped by 2% in after hours trading and continued to trade down 1.5% in Thursday’s trading. Over a shoe.
We sometimes wonder why people act against their own self interest so often, whether in the voting booth or at the workplace or in social life. Most often the reason is that we allow our emotions to overrule our rational minds and then act from a place of fear or panic instead one of information.
Let’s be clear. In Friday’s trading, Nike was right back where they had been before…
