From Behavioural Investment:
Our desire to extrapolate is an understandable reaction to the uncertainty of financial markets. If we cannot predict the future then our best approach may be to assume a continuation of previous trends. It is not, however, simply a case of presuming performance patterns will persist; the power of extrapolation comes from the narrative that we use to explain what has happened in the past. The stories we tell are what make us believe that things will continue...
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