Thread by @AndreaSJames

Anthropologist Edward Hall's 1976 book, Beyond Culture, was probably the single most helpful framework I've ever read in understanding the different ways people communicate. Specifically, his illumination of high context vs low context cultures. 1/13

In high context cultures, context matters more -- body language, what goes unspoken, indirect communication. In low context cultures, words matter more. I believe Hall said, at the time, that Japan was the highest context and Swiss-German the lowest context culture. 2/13

We see differences even in the US, 1 country w/vastly different ways of relating. I'm from NJ, we tend to be lower context - speak directly, not to implying anything deeper. As I moved around, my style put some people off and I misunderstood others who spoke via implication. 3/13

I remember in Deep South, lady told me come over at any time. Later, someone explained, "She doesn't really want you to do that." I asked, "Then why would she say that?" I realized that some value politeness over truth. Fascinating to me, obvious to the politeness people. 4/13

To this day, I value truth over politeness. But it's fun for me to figure out how to use the richness of language to accomplish both. But some people truly value politeness over truth -- because to them, rudeness is a worse offense than lying. 5/13

American business leaders who manage teams internationally have learned this, too, particularly cultures that are much higher context than the US. They have to learn how to get valid answers without asking direct questions. Seems difficult to learn. 6/13

Wall Street might have low context people (New Yorkers are quite direct!), but the general culture in high finance is *extremely* high context. Capital markets players are used to being tip toed around. Every word the Fed Chair speaks is scrutinized, for example. 7/13

Buy side is trying to get an edge, and so figuring out the meaning behind the meaning - the game behind the game - becomes paramount. Strict regulatory environment plus fiduciary duty creates a high context environment where all players are very careful. 8/13

Stock analysts write with very high context. They don't say, "The stock is going to go down and we believe you should sell it," they say, "We remain on the sidelines while we wait for a more compelling entry point." 9/13

Stock analysts don't say, "This rocket ship is going to the moon" (lol), they say, "A favorable risk/reward profile combined with expanding opportunities makes this a compelling story..." 10/13

The high context environment on Wall Street forces CEOs & CFOs to constantly assess how what they say might be interpreted and how business actions might be read or misread. They have to learn how to speak the Street's language, which really means, learning the context. 11/13

I believe @elonmusk means everything he says, but doesn't layer in tons of context. Is truthful as he sees it and defiantly believes that should be enough. Wall Street constantly probing for 3 levels of meaning and TSLA is like, "What 🤷‍♀️we're just being honest (or funny.)" 12/13

Low context language, input into a high context environment, causes market volatility. True of both bond yields and stocks. In relationships, understanding that one person might trend toward one style over another can help clear up misunderstandings. 13/13