Trend Following With Michael Covel

My guest today is Thomas Gilovich, an American psychologist who is the Irene Blecker Rosenfeld Professor of Psychology at Cornell University. He has conducted research in social psychology, decision making, behavioral economics, and has written popular books on these subjects. The topic is behavioral economics. In this episode of Trend Following Radio we discuss: How his world dovetailed into money and markets Basketball, streak shooting, and the "hot hand" Randomness and the clustering illusion The missing Malaysian Airlines flight and probability The reluctance to accept a probabilistic view of the world Politics, predictions, and probabilities People who see the world in black and white Drawing conclusions from incomplete and unrepresentative evidence, and how to avoid that folly The position of the devil's advocate, and the importance of that role Gilovich's response to the media's talking heads, and their often black and white opinions Behavioral economics vs. traditional economics When people do the wr