Narrative hasn’t disappeared; it has transitioned from a primary driver to a secondary amplifier.
In today’s market structure:
Strong fundamentals + strong narrative → outsized returns / breakout performance
Weak fundamentals + strong narrative → short-lived dislocations, typically mean-reverting
Strong fundamentals + weak narrative → persistent undervaluation / delayed price discovery
In essence:
Narrative no longer manufactures trust; it amplifies—or, in some cases, temporarily distorts—underlying fundamentals.