“Our comforting conviction that the world makes sense rests on a secure foundation: Our almost unlimited ability to ignore our ignorance.” – Daniel Kahneman

The loss of Danny Kahneman is a reminder that we should review his work and apply them to both our selves and the markets.

I am fascinated by the idea of Narrative Fallacy (the term was actually coined by Nassim Taleb in “The Black Swan“) and how it applies to pretty much everything.

Here is Kahneman in ‘Thinking, Fast and Slow’

“Flawed stories of the past shape our views of the world and our expectations for the future. Narrative fallacies arise inevitably from our continuous attempt to make sense of the world. The explanatory stories that people find compelling are simple; are concrete rather than abstract; assign a larger role to talent, stupidity, and intentions than to luck; and focus on a few striking events that

Keep reading this article on Barry Ritholtz - The Big Picture.

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