Re:Statement of SEC Regarding Recent Market Volatility
by edmundsauto on Friday January 29, 2021 @01:43PM
(#25960760)
So Michael Mauboussin is kinda of my obsession in this area. Basically, if it's a field with a lot of luck involved in outcomes, don't trust the experts (finance and economics). If it's heavily skill based (chess), trust the experts.
My opinion (see below for how I have defined these)
Outsider expert > establishment expert for public ally challenging and overturning norms
Any expert > layperson on the basic facts (ignoring statistical aberrations, of course)
“Outsider” being unconstrained by norms, not afraid to be cast out of a long established peer group
“Expert” has deep grasp of contemporary facts, second and third order consequences, puts in controls to remove cognitive biases, deep curiosity and healthy scepticism.
“Layperson” being someone who is probably intelligent, but grasps quickly onto unfamiliar concepts and data and makes heuristic calls based on limited data.