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Investments glossary

Hindsight Bias


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Quotes of the day:

All that is gold does not glitter not all those that wander are lost.

— J. R. R. Tolkien

Hindsight bias is a psychological phenomenon that allows people to convince themselves after an event that they had accurately predicted it before it happened. This can lead people to conclude that they can accurately predict other events. Hindsight bias is studied in behavioral economics because it is a common failing of individual investors.


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