Regular readers of this site know that I reference and write about what Nassim Taleb calls the narrative fallacy often. It is our tendency to look backward and create a pattern to fit events and to construct a story that explains what happened along with what caused it to happen. We all like to think that our decision-making is a rationally based process — that we examine the evidence and only after careful evaluation come to a reasoned conclusion as to what the evidence suggests or shows.
But we don’t. Continue reading
Above the Market 