"Hindsight, or the ability to interpret the past, provides us with a fantasy that the world can be understood; it also offers us a fantasy that the world operates in a reasonable way, even when situations are unreasonable. In many areas, this is a major source of errors."
"Most people, when faced with things they do not understand, do not realize they do not understand, because they can come up with a plausible explanation based on their unique perspective and experiences in the world, no matter how limited those experiences may be. We all want the complex world we live in to make sense, so we tell ourselves stories to fill in the blanks that should actually be blind spots."
"These stories have a fascinating yet frightening impact on us at a financial level."
"When I ignore certain parts of how the world works, I may completely misunderstand why the stock market develops in such a way, and then predict the future of the stock market in an overly confident manner. One of the reasons why predicting the stock market and the economy is so difficult is that you are the only one in the world who thinks the world operates the way you envision."
"When you make decisions based on reasons I don't even understand, I may blindly follow you to make decisions that are right for you but catastrophic for me. This is the reason bubbles form."
"Accepting how much you do not understand means accepting that many things happening in the world are beyond your control."
"This may be hard to accept."
"— (Wealth Mindset)"