Issue #2

There is a growing realisation in finance that we need to prioritise causation over correlation. Correlation describes what is happening (we see a puddle, and it is raining). Background knowledge suggests why something is happening - Causation (the rain caused the puddle not the other way around). Correlation is associative, descriptive, but not explanatory. To understand why something is happening and possibly predict the future we need causation.

Why do I bring this up? Because so much of finance is associative. It is stories, narratives and correlations that are conveniently effective at persuading people to do things that will hopefully be beneficial in the future.

So often the future does not play out as hoped and everyone is surprised.

I know people like stories, but really...