Posted by on Mar 20, 2020 in Articles & Advice, Blog, Books, Columns, Featured |

Image Credit: Alex Nabaum




By Jason Zweig | Updated March 20, 2020 11:52 am ET


It’s springtime in the year 2030. You’re looking back at the crash of 2020, the devastation it dealt your portfolio and how you behaved as an investor.

What will you say?

If human nature is any guide — and, let’s face it, it is — your accounts of what happened will begin with such words and phrases as “Clearly…” or “It was obvious to me that…” or “Everybody knew that…”

In the future, your memory of the crash of 2020 won’t be a recollection. It will be a reconstruction, built partly from what is happening now and largely from what you learn later about what hasn’t happened yet.

I’m describing hindsight bias — the belief, after something happens, that we foresaw that it would occur.


To read the rest of the column:


For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig,The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money


Articles and other resources:


You’re Not as Good an Investor as You Think You Are

How to Control Your Fears In a Fearsome Market

From the Archives: Daniel Kahneman

When the Stock Market Plunges…Will You Be Brave or Will You Cave?

For Investors, Dealing With a Loss of Control

Stocks Are in Chaos. Control the One Thing You Can.