Virtually sixty years later, several believe Decca should’ve recognized The Beatles’ expertise promptly and predicted their foreseeable future good results. This is what’s known as “hindsight bias”—also regarded as the “I-understood-it-all-together phenomenon”two—a tendency to believe we understood a little something was heading to take place or that we essentially predicted it.
Hindsight bias exists prominently in investing.three No subject the sector problems, there are constantly messages from the media or the investing community that a sector celebration, this sort of as an intense drop or maximize, was foreseen, possibly even clear. If you start to believe you
