The lens through which any of us looks at life is filtered by a wide range of elements, including our own experiences, prejudices, biases, ability, education, social status, cultural conditioning, beliefs, fears, and even what we want to believe.
Data is objective. But data on its own has no value. The value is in how you interpret it, and what you do with the analysis.
All types of forecasts or diagnoses are predicated on viewing data and the patterns in that data, and interpreting that data.
A meteorologist looks at patterns of clouds and barometric pressure to determine whether it will rain.
An investment analyst looks at patterns of companies’ earnings and corresponding stock prices to recommend which stocks to buy.
A real estate broker looks at patterns of pricing and sales rates and time on market to assess how long it might take to sell your house and where to price it.
A doctor looks at patterns of test results and symptoms to diagnose illness.
Economists look at various data metrics to determine the state of the economy.
No matter how comprehensive the analysis, every professional in any field will inevitably miss something.
They will miss something because interpreting data is a human art. And humans by nature are not objective.
We can’t see our own blind spots.
We see through the filter of our experience and beliefs.
Even the most rational predictions are irrational.
It helps to be aware of your filters and your blind spots.
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