Each post has a list of what Daniel Kahneman, a Nobel Prize winning psychologist, calls risk policies and I call gap-to-edge rules.
I would say there’s been a great increase in the number people doing dumb things. And they do big, dumb things.
It’s amazing that 2% makes such a big difference
Our mind searches for confirming evidence that we are right and shies away from contrary evidence.
Today everyone is fretting about inflation and the potential for a recession. Trying to decide on the outlook for these macro-economic things can be a distraction.
As an individual investor I have to recognize that I am unlikely to think of something the brains of Wall Street haven’t thought of, or see things the brains of Wall Street have missed, or have insights they don’t possess.