Social Identity Theory

In Social Identity Theory there are a couple of phenomena known as BIRG - Basking In Reflected Glory, and CORF - Cutting Off Reflected Failure. 

BIRGing and CORFing represent two strategies individuals employ to enhance or protect their self esteem. An easy-to-understand example is the manifestation of this in sports fandom.

BIRGing, refers to the inclination of an individual to associate themselves with the successful and the celebrated. Researchers have provided evidence that following a winning football game fans were more likely to wear clothing that endorsed the football team. They were also more likely to use the pronoun 'we' to describe the events of the game as compared to fans after a losing football game. 

In the case of a loss fans frequently distanced themselves from the football team - cutting off reflected failure – or CORFing. These fans were less likely to wear clothing endorsing the team. Unremarkably, when asked to describe the events of the game they were more likely to use the pronoun 'they' in their descriptions. 

There are political ramifications as well – often reflected in how long people choose to keep their lawn signs out, their bumper stickers on a vehicle and their social media activity. 

I’m sure that your eyes are glazing-over at the musings of an old man so I will close this post with another pertinent phenomenon.

The capital markets really, really like divided government. Wall Street abhors uncertainty – feigned drama in particular.  

So, if you are retired and living on your investments or are saving money in a 401k, taking calculated risks in building a stock portfolio and keeping a long term view and faith in the American Experiment you have very good reason to remain righteous and hopeful.  

Psychobabble about fragile self esteem is thin currency which won't even buy you a beer.  

Move along now.  

There’s nothing further to see.