STREET DOGS
Surprises
We want to think the stock market is rational, like a machine, but it isn’t
Until your last breath, there are lots of surprises waiting for you, and, sometimes, at those points you can’t do anything, just wait, watch and react like a helpless kid. After the last breath also, you don’t know, there may be even more surprises waiting for you like heaven or hell." — Nutan Bairacharva. Psychologist Daniel Kahneman said something really smart on a recent podcast: "Whenever we are surprised by something, even if we admit that we made a mistake, we say, ‘Oh I’ll never make that mistake again.’ But, in fact, what you should learn when you make a mistake because you did not anticipate something is that the world is difficult to anticipate. That’s the correct lesson to learn from surprises: that the world is surprising." This is one of those things that most people agree with but find impossible to put into practice. Here’s the problem: We want to think the economy and stock market are rational, like a machine. They are easier to stomach if we view them that way. Sinc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.