Another cognitive bias

Published: Sun 30 April 2023
Updated: Wed 03 May 2023
By steve

In Markets.

Sunday 30, April 2023

Pessimism Bias

We all know about availability bias, confirmation bias, and probably several more systematic ways in which our intuition leads us astray in assessing the state of the world. There really are an almost uncountable number of cognitive biases, as this Wikipedia Article reveals. This is an article about how people generally underestimate how much better off they are, really, than they were.

Clearly, as we age, we have less to look forward to, and more cause for regret. But, actually, things generally do get better, and especially real assets generally increase in value, if only because our unit of measurement is constantly shrinking.

Anyway, it’s another bias to try to be on guard against.

https://www.wsj.com/articles/pessimism-is-the-one-thing-americans-can-agree-on-3fc98797?st=r5v1si6rfhkktyh&reflink=desktopwebshare_permalink

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