Index Investing News
Saturday, November 1, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Six Degrees of Separation – The Big Picture

by Index Investing News
November 14, 2022
in Economy
Reading Time: 3 mins read
A A
0
Home Economy
Share on FacebookShare on Twitter


 

 

I wonder how far my view of the universe is from (objective) reality.

My pal Dave Nadig suggests that we are all much further away from any sort of recognition of the true universe than we suspect.

We chatted about this last week, and the more I thought about it, the further away from reality it turns out that we actually are. Best I can figure, we may all be at least six degrees1 away from truly comprehending, well, anything:

1. Perception: The way we see the world is through a very specific set of sensory apparatus –one that we know is functional but flawed. There is a micro-delay in receiving inputs, so we are always a few milliseconds behind reality, living in the imediate past so to speak. But our perceptions evolved over time to affoird a survival advanage.

2. Interpretation: Our perceptions evolved to be useful but not precise (that’s too expensive). It turns out that usefulness is even more important than  accuracy (which is unneccesary). Hence, how we interpret input is based on a similar set of trade offs .

3. Ego: We are all individuals who cannot but help to see the world through our own sense of self. It’s our vantage point, it gives us a unique identity but it comes with lots and lots of baggage. (See also: Reproductive/survival bias). Stepping out of ourselves is challenging to do consistently. Our default setting assumes our vantage point is correct.

4. Models: We are born knowing nothing but having a rich heritage of instincts and evolutionary history. And so we build up our own internal model of the universe over time and at great cost. We are loathe to throw away this expensive internal map, even when confronted with overwhelming proof it is wrong. See also Cognitive Dissonance

5. Priors: Over time, the model we create experiences the world, and begins to identify patterns. These form the basis of experiences, beliefs, ideas, and even knowledge. But our understanding is imperfect, and what we think we know is often wrong. Subsequent decisions based on fundamentally flawed conceptions lead to an obvious outcome.

6. Ideology: We organize our thoughts about complex structures into a belief system (different than a model). This system of beliefs can become a lens through which we view the world. That lens is often useful, but rarely comprehensive and only accidentally accurate. It easily leads to incorrect conclusions.

That is the basic idea — the process of how input enters our processors, how we manage to manipulate it, and what the eventual output is.

It is tremendously humbling to recognize how little we actually know and how easy it is to misunderstand any complex system — be it politics, markets, or just the world around us…

 

 

See also:
Blueprint for the Global Village (This View Of Life, Sep 4, 2014)

 

Previously:
Unconventional Wisdom (November 9, 2022)

Is Partisanship Driving Consumer Sentiment? (August 9, 2022)

Nobody Knows Nuthin’ (May 5, 2016)

Forecasting & Prediction Discussions

 

_________

1. Six degrees of separation is a simple idea: Everybody is just six (or fewer) social connections away from each other. First popularized in John Guare’s 1990 play Six Degrees of Separation, it spread widely in part due to “Six Degrees of Kevin Bacon” (link any actor to Kevin Bacon through six or fewer connections).

 

Print Friendly, PDF & Email



Source link

Tags: BigDegreesPictureSeparation
ShareTweetShareShare
Previous Post

The Man Utd players who will benefit from Cristiano Ronaldo’s exit

Next Post

Ethan Ilzetzki on monetary policy

Related Posts

Belief Authorities Statistics, Not Authorities

Belief Authorities Statistics, Not Authorities

by Index Investing News
October 31, 2025
0

“Professional failure” is clearly having a second. Pollsters, Wall Avenue analysts, tech futurists… all are going through calls for to...

MiB: Liz Ann Sonders, Chief Funding Strategist at Charles Schwab

MiB: Liz Ann Sonders, Chief Funding Strategist at Charles Schwab

by Index Investing News
October 27, 2025
0

     This week, I communicate with Liz Ann Sonders, chief funding strategist at Charles Schwab. Liz Ann focuses...

Do not Mistake a Miracle for Its Trigger

Do not Mistake a Miracle for Its Trigger

by Index Investing News
October 23, 2025
0

In occasions of disaster, we contemplate what might be accomplished to return to a path of prosperity and wealth. Nevertheless,...

Straight Whiskey and Soiled Politics

Straight Whiskey and Soiled Politics

by Index Investing News
October 19, 2025
0

Within the early twentieth century, America was buzzing with Progressive Period reforms aimed toward taming the excesses of industrialization. One...

Trump marketing campaign to dam international delivery emissions deal falters

Trump marketing campaign to dam international delivery emissions deal falters

by Index Investing News
October 15, 2025
0

Unlock the White Home Watch publication without spending a dimeYour information to what Trump’s second time period means for Washington,...

Next Post
Ethan Ilzetzki on monetary policy

Ethan Ilzetzki on monetary policy

FDMT stock spikes as wet AMD therapy cuts Eylea burden (NASDAQ:FDMT)

FDMT stock spikes as wet AMD therapy cuts Eylea burden (NASDAQ:FDMT)

RECOMMENDED

What closure of downtown Neiman Marcus means for firm, Dallas

What closure of downtown Neiman Marcus means for firm, Dallas

February 24, 2025
FIRST TRADE: Equities begin at recent highs as Fed delivers 50 bps charge reduce; Nifty close to 25,550

FIRST TRADE: Equities begin at recent highs as Fed delivers 50 bps charge reduce; Nifty close to 25,550

September 19, 2024
One year on, a star Chinese dealmaker’s absence casts pall over his bank By Reuters

One year on, a star Chinese dealmaker’s absence casts pall over his bank By Reuters

February 8, 2024
Abrdn Life Sciences Buyers This fall 2024 Commentary (NYSE:HQL)

Abrdn Life Sciences Buyers This fall 2024 Commentary (NYSE:HQL)

March 30, 2025
RUNE and THETA Fall by Over 10% on Monday – Market Updates Bitcoin Information

RUNE and THETA Fall by Over 10% on Monday – Market Updates Bitcoin Information

April 11, 2022
MiB: Zeke Faux, Number Go Up

MiB: Zeke Faux, Number Go Up

November 4, 2023
Gal Gadot was Margot Robbie’s choice to play Barbie

Gal Gadot was Margot Robbie’s choice to play Barbie

August 12, 2023
The Home of Carter G. Woodson, the Man Behind Black History Month

The Home of Carter G. Woodson, the Man Behind Black History Month

February 6, 2024
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In