Mr. Seawright first refers to the famous ‘Gorillas in our midst’ psychological test to support Daniel Kahneman’s contention that not only do we frequently miss the obvious, but that we are also blind to our ignorance.
In Mr. Seawright’s words, “We think we’re smart and that we’ll know if we’re wrong. But we don’t. TheStory continues below advertisement So far, so horrible, as far as the human condition goes. But, the author then pivots to an important, far more optimistic thought. Peoplebe ignorant and mean, but not all the time. “All day, every day, we are observers of the world around us. We interpret what we perceive and make decisions based upon those interpretations.
Assessing investor behaviour in aggregate is very much a ‘glass half full/half empty’ proposition. Those looking for negative traits will find plenty of ammunition, but trends like the move from active to passive investing strategies shows that over time, rational investment decisions prevail.This is the Globe Investor newsletter, published three times each week.
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