Continue reading...Republicans — to be precise, 74 percent, according to a CBS News poll — think it’s very or somewhat likely Donald Trump’s offices were wiretapped, even though the White House has offered no evidence to back up the president’s claim that his predecessor ordered the monitoring.
I just love data points like this. They say so much about humans as a species — how we process information, our inability to look dispassionately at a situation, the ever-present cognitive errors, even the challenges of reaching a simple, rational conclusion based on evidence.
There are lessons here for investors who want to better understand how their own minds operate, and how they can manage their own behavior. Each of these bullet points applies equally to the survey respondents cited above and to almost all investors:
No. 1: We seek information to reinforce our beliefs. As investors, we suffer from the endowment effect: We place a higher value on holdings we already own. Hey, if we bought it, then...
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