Index Investing News
Saturday, May 30, 2026
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).

 

Transcript: Vimal Kapur, Chairman and CEO of Honeywell



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

Transcript: Vimal Kapur, Chairman and CEO of Honeywell

Transcript: Vimal Kapur, Chairman and CEO of Honeywell

by Index Investing News
May 27, 2026
0

https://www.youtube.com/watch?v=sVqE7bsmtA0https://www.youtube.com/watch?v=sVqE7bsmtA0     The transcript from this week’s MiB: Vimal Kapur, Chairman and CEO of Honeywell, is below. You can...

Development by Consent – Econlib

Development by Consent – Econlib

by Index Investing News
May 23, 2026
0

March 2026 marked the 250th anniversary of the publication of An Inquiry into the Nature and Causes of the Wealth...

Transcript: Shelia Bair, former FDIC Chair

Transcript: Shelia Bair, former FDIC Chair

by Index Investing News
May 19, 2026
0

https://www.youtube.com/watch?v=Y-mjUH1lHg4https://www.youtube.com/watch?v=Y-mjUH1lHg4     The transcript from this week’s, MiB: Shelia Bair, former FDIC Chair, is below. You can stream and...

AI and Comparative Advantage – Econlib

AI and Comparative Advantage – Econlib

by Index Investing News
May 15, 2026
0

It was a fact universally acknowledged that a young man or woman in 1800s Lancashire could find gainful employment as...

Transcript: Howard Lindzon, Social Leverage

Transcript: Howard Lindzon, Social Leverage

by Index Investing News
May 11, 2026
0

https://www.youtube.com/watch?v=Q12PYx1e-eohttps://www.youtube.com/watch?v=Q12PYx1e-eo     The transcript from this week’s MiB Howard Lindzon, Social Leverage, is below. You can stream and download...

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

Tesla, Warner Bros. Discovery, Lennar and more

Tesla, Warner Bros. Discovery, Lennar and more

December 18, 2022
SAP CEO urges Europe to not regulate AI, says will put area behind

SAP CEO urges Europe to not regulate AI, says will put area behind

October 23, 2024
Slavery, Compensation, and the Limits of Economics

Slavery, Compensation, and the Limits of Economics

November 22, 2024
The Fastest Drop in Home Prices Since 2009

The Fastest Drop in Home Prices Since 2009

October 3, 2022
Book Review: The Enduring Value of Roger Murray

Book Review: The Enduring Value of Roger Murray

February 10, 2023
Rangers’ £18k-p/w Star Could Seek Move This Summer

Rangers’ £18k-p/w Star Could Seek Move This Summer

April 18, 2023
Emerson Electric Staged For Growth After Focus On Automation (NYSE:EMR)

Emerson Electric Staged For Growth After Focus On Automation (NYSE:EMR)

November 27, 2023
Berkshire assembly: Buffett defends investments and slams Wall Avenue

Berkshire assembly: Buffett defends investments and slams Wall Avenue

May 1, 2022
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