Michel Pireu Columnist

Confirmation bias is the propensity to seek out or interpret information that validates our beliefs. An investor who likes the idea of buying into small caps, for example, is more likely to look for information that justifies doing so and reject information to the contrary.

Inversion can be particularly useful as a way to counteract the gravitational pull of confirmation bias. The root of inversion is “inverting,” meaning to upend or turn upside down; to take the opposing view.

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