The Traderszone Network

Published in TZ Latest News 30 June, 2015 by The TZ Newswire Staff

Confirmation bias and bubbles

I’ve done a number of posts pointing out that people are hard-wired to find patterns where they don’t exist.  Studies have shown that people will see “bubbles”, even in data that is generated to follow a random walk.

Now of course just because most people would believe in bubbles even if they did not exist, does not in any way prove that they don’t exist.  Maybe they do.  But we always have to be on guard against cognitive bias.

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