Trap -4: Hindsight Bias

After an event occurs, we tend to believe that we predicted it all along. For instance, if a stock you invested in performs poorly, you might say, "I knew it was going to drop."

Hindsight bias is a false belief that our judgement is better than it actually is when we look back and see the events. Reality appears more predictable after an event happens. This is also known as the ‘Knew-it-all-along effect’.

This bias makes people less accountable fo...

A bias that many people including historians, experts and physicians encounter is the hindsight bias, which makes them think they knew how an event would turn out before it happened. It is the tendency for people to perceive past outcomes as having been more predictable ...