Let’s start with a short story about Caligula.

Caligula was a Roman emperor who ruled from 37 to 41 CE. He was known for his eccentric and tyrannical behavior, and one of the most famous incidents involving him was when he brought his horse, Incitatus, to the Roman Senate.

According to the historian Suetonius, Caligula was known for treating his horse as a prince, providing him with a stable of marble, a manger of ivory, and an imperial couch to recline on. One day, he brought the horse to a meeting of the Senate and attempted to appoint him as a consul, causing great shock and outrage among the senators.

It is not entirely clear why Caligula brought his horse to the Senate, but some historians speculate that he may have been trying to mock the senators or demonstrate his disdain for the traditional institutions of Roman government. Others have suggested that he may have been trying to humiliate the senators or show off his wealth and power.

How is all this related to financial markets?

In the world of finance, market trends can often seem just as irrational as the behavior of Caligula.

Like Caligula, financial markets can be driven by emotions, with traders and investors making decisions based on fear, greed, and the pursuit of wealth.

Just as Caligula brought his horse to the Senate for reasons that were not entirely clear, the financial markets can sometimes move in unexpected ways, driven by factors that are difficult to predict or understand.

At ExDiogenesResearch, we adopt a philosophy of inaction when faced with confusion. Our priority is to safeguard against potential losses, and the most effective way to achieve this is to refrain from taking any action.