Terrific out of context quote that is very applicable to investors and traders:
“Dozens of studies have shown that witnesses’ memories of events often change when they are supplied with new contextual information. Itiel Dror, a cognitive psychologist who has done extensive research on eyewitness and expert testimony in criminal investigations, told me, “The mind is not a passive machine. Once you believe in something—once you expect something—it changes the way you perceive information and the way your memory recalls it.”
In the bull bear debate, think about all of the cognitive foibles and wetware errors we each bring tot he table in terms of processing news, data and information.
Trial by Fire
New Yorker, September 7, 2009