Arnott stated: 'Bargains [with investing] got there by inflicting pain and losses. Nobody wants to double down on pain and losses. The result is that the stock market is a classic Giffen good. A Giffen good is something where demanding [sic] increases as the price goes up. Common examples are jewelry or fashion, high fashion clothes. A designer dress for $1,000 dollars isn’t going to sell, a designer dress for $10,000 will. And same thing applies to the stock market. Economists are reluctant to treat stocks and bonds as Giffen goods, but they are. Demand goes up as the price goes up. It’s a little bit like if Tiffany’s had a banner sign saying post-COVID sales, everything marked up 20% and people were breaking down the doors to get in and Cartier across the street, post-COVID sales, everything marked down 20% and people think, “Oh, they’ve got something wrong with their product. I’m not going in there.”' As quoted in The Meb Faber Show, Episode #313: Rob Arnott, Research Affiliates, “Modern Monetary Theory Does Not Work", May 19, 2021
