Latest news with #over-simplification

Bloomberg

The Fallacy of Market Narratives

To get John Authers' newsletter delivered directly to your inbox, sign up here. Humans think in terms of narratives. We're hot-wired to do so; condense something complicated into a story, and we understand it more easily. That raises the risk of over-simplification and narrative fallacy — a notion from Nassim Taleb — in which we grab hold of a version of events and allow it to color incoming data.