Did you expect a market crash in 2020?
How bad did you think the market crash would be?
How quickly did you think the market would recover?
Are you sure that’s what you thought?
Our minds play tricks on us. The worst part is knowing about it doesn’t help. Hindsight bias is one such trick that messes with our memories in a couple of different ways.
- We tend to look back on our past predictions as being more accurate than they were.
- We tend to look back on events as being more foreseeable than they were at the time.