Capitalogix

Getting Educated Before You Vote!

Early voting has started, and if all goes to plan, we’ll know who will be the President on Tuesday, November 5th. Realistically, it’s more likely that you’ll know who you think the President is ... but the country may still be officially undecided.

It has gotten more challenging to exercise truly educated decision-making through the fog of fake news and the growing echo chambers of noise surrounding the candidates (and their policies).

The reality is that most of our news sources are tinted by the lens of their ideology - which is okay. That means they’re appealing to their targeted audience. 

That being said, it may also be worth looking at the same news story from a comparative news source from the other spectrum - or even better, a primary source when it comes to science/economics. I found two tools that help me do this kind of comparison easily – Ground News and Particle.

Ground News is a news aggregation platform that makes it easy to compare news sources, read between the lines of media bias, and break free from algorithms. Key features and benefits include:

• Source comparison: Allows users to see how different news outlets cover the same story, grouped by political leaning (left, center, right)
• Bias distribution: Shows the breakdown of political orientation for news sources covering each story
• AI-generated summaries: Provides summaries of coverage from different political perspectives
• Blindspot feature: Helps users identify stories not widely covered by their preferred sources
• Ownership information: Shows the ownership/financial interests behind news outlets.

Particle is a news reader app that delivers AI-powered news summaries to help you understand more, faster. It was created by an ex-Twitter alumni. The Particle app lets you browse a personalized list of stories to get you up-to-speed at a glance ... or go infinitely deeper to understand various perspectives, broader context, and how a story has unfolded over time. They’re still in private beta. You can sign up for the waitlist here.

Here’s a chart that shows where news sources rank. You can click the image for an interactive version with more details. And, if you’re curious about their methods, click here. 

via Ad Fontes Media

On top of reading various news sources, there are a couple of other tools I like: 

• FiveThirtyEight - Uses graphics to tell visual stories on valid statistics. Named after the number of electoral votes. Also has a visual presidential forecast. 
• RealClearPolitics - Aggregates news from various sources, as well as writing their own opinion pieces. Also has a good visual on the current state of the presidential, senate, and house races. 
• Brittanica ProCon - Tracks the stated positions of politicians on various issues. It can be sorted by candidate and by issue. It also has a quiz you can take to assess which candidate you actually resonate with. 
• Politifact & FactCheck - Both sites fact-check presidential statements, party statements, and more. We know politicians often lie by omission or focus only on the specific stats that are relevant to their point. Fact-checking helps you gain a more holistic picture. 

You are probably sick and tired of all the noise surrounding the election. However, our democratic system thrives on the intricate system of checks and balances powered by information sharing and continuous debate. This process compels the government to remain responsive and accountable to the people. 

Remember, choosing not to vote is still a choice ... and getting out to vote is the only way to make sure that your voice is heard - whether or not you believe in the health of America's democracy. 

 

The Law Of Diminishing Returns

At some point, more of the same stops paying off ... it is called the law of diminishing returns.

 

via Sketchplanations

Nature (and common sense) reminds us that equilibrium is important. For example, when you exercise too much, you get injured; when you drink too much water, you get poisoned; etc. 

This concept applies almost everywhere.

• It's why diversification is so important in portfolio construction theory. 
• Or, why you don't want to put all your eggs in one basket (concentrating your risk).
• And, my favorite, it's also why you shouldn't only eat vegetables.

A related nugget of wisdom from the extreme ... Too much of a good thing is a bad thing! 

And of course ... Be moderate in everything, including moderation.

The Average NFL Player ...

When I woke up this morning, I saw that Dak Prescott, the star quarterback for the Dallas Cowboys, signed a new contract, making him the highest-paid player in NFL history. His new four-year, $240 million deal makes him the league’s first $60 million per year player. 

If you are curious, here is a list of the highest-paid NFL players in 2024.

Each of the 32 teams has an active roster of 53 players. That is 1,696 active roster players. Add the practice squad and account for injuries, and in a typical season, you end up with about 2,100 players per season.

Now that the NFL Football season is officially underway, I thought it would be interesting to look at each position’s composite player.

As you might expect, different sports have a different ratio of ethnicities, builds, and features. The same is true for different positions on a football team.  For example, you might expect more Pacific Islanders in Rugby or Asians in Badminton. You expect NBA players to be taller, swimmers to have longer arms, and football players to have more muscle. 

Here is a visualization that shows what happens when you average the top players’ faces in various positions.

  

osmutiar via Reddit

Composites are interesting.

While you may be thinking, “This player must be unstoppable,”... statistically, he’s average.

The “composite” NFL player would be the 848th-best player in the league. He’s not a starter, and he plays on an average team. 

We found the same thing with our trading bots. The ones that made it through most filters weren’t star performers. They were the average bots that did enough not to fail (but failed to make the list as top performers in any of the categories). The survivors were generalists, not specialists.

In reality, you need both.

In an ideal world with no roster limits, you’d want the perfect lineup for each granular situation. You’d want to evaluate players on how they perform under pressure, on different downs, against other players, and with various schemes. 

On a related but slightly different note, I recently read a post called “Why Generalists Own the Future.” It says that, in the age of AI, it’s better to know a little about a lot than a lot about a little. But part of that rationale is that it is easy to find or create digital specialists to do the things people used to do.

That’s what technology lets you do with algorithms. You can have a library of systems that communicate with each other ... and you don’t even have to pay their salary (but you will need data scientists, researchers, machines, data, alternative data, electricity, disaster recovery, and a testing platform).

You won’t find exceptional specialists if your focus is on generalized safety. Generalists are great, but you also have to be able to respond to specific conditions.

How ‘Bout Them Cowboys!

An Antidote For Anxiety & Scary Times

People seem rattled right now, don’t they?

Wallets have been tight, and fears of a recession have run rampant.

Even though markets and the economy are not the same thing, many voters believe they are. Consequently, in an election year, I suspect the government will push every button and pull every lever to boost the market leading into November.

Speaking of the markets, they have been pretty volatile the last few weeks. They have posted some of their worst days since COVID-19 but some of the best, too.

We find ourselves in a particularly partisan election year, with lots of uncertainty about who is running, what they stand for, and whether they can make a difference – or even do the job.

The situation feels worse because scary geopolitical events (that threaten World War 3) punctuate seemingly endless negative news cycles.

Now, on to the real point ... those things don’t matter and shouldn’t steal your focus. Why? Because that’s the playing field we all have to navigate.

There will be winners and losers. The key distinction lies in whether you choose to focus on opportunities or risk. 

So, I thought this would be an excellent time to revisit how to cope with losses and manage your anxieties in “scary times.” 

The Anxiety Antidote

During scary times, many people suffer from “I should have ...”, or “if I would have ...”, or “if I could have ...” thoughts.

The problem is that thoughts like those create more stress and distraction. 

I’m reminded of a quote.

"When the trough gets smaller ... the pigs get meaner." - Dan Sullivan

 

 

Negative focus highlights loss, difficulties, past events, missing things, and what you don’t want.

Think of them as an unhealthy reflex that wastes energy, confidence, and time.

All We Have To Fear Is Fear Itself  

I often talk about market psychology and human nature. The reason is that markets reflect the collective fear and greed of their participants... people tend to get paralyzed during scary times like these.

But it’s not the economy that makes people feel paralyzed. People feel paralyzed because of their reactions and their beliefs about the economy. Your perception becomes your reality. 

A little examination reveals that most fear is based on a “general” trigger rather than a “specific” trigger. In other words, people are afraid of all the things that could happen and are paralyzed by the sheer scope of possibilities. These things don’t even have to be probabilities to scare them.

You gain a competitive advantage as soon as you recognize that it’s not logical. Why? Because as soon as you distinguish that fear as not necessarily true, you can refocus your insights and energy on moving forward. You can act instead of react. You make better decisions when you come from a place of calm instead of fear... so create that calm. 

Even a tough environment like this presents you with opportunities if you watch for them ... or even better ... if you create them. 

The Scary Times Success Manual

The goal is to move forward and feel better.

Strategic Coach offers ten strategies for transforming negativity and unpredictability into opportunities for growth, progress, and achievement. They call it the “Scary Times Success Manual,” and what follows are some excerpts:

Forget about your difficulties, focus on your progress.

Because of some changes, things may not be as easy as they once were. New difficulties can either defeat you or reveal new strengths. Your body’s muscles always get stronger from working against resistance. The same is true for the “muscles” in your mind, spirit, and character. Treat this period of challenge as a time when you can make your greatest progress as a human being.

Forget about events, focus on your responses.

When things are going well, many people think they are in control of events. That’s why they feel so defeated and depressed when things turn bad. They think they’ve lost some fundamental ability. The most consistently successful people in the world know they can’t control events - but continually work toward greater control over their creative responses to events. Any period when things are uncertain is an excellent time to focus all of your attention and energy on being creatively responsive to all the unpredictable events that lie ahead.

Forget about what’s missing, focus on what’s available.

When things change for the worse, many desirable resources are inevitably missing - including information, knowledge, tools, systems, personnel, and capabilities. These deficiencies can paralyze many people, who believe they can’t make decisions and take action. A strategic response is to take advantage of every resource that is immediately available to achieve as many small results and make as much daily progress as possible. Work with every resource and opportunity, and your confidence will continually grow.

Forget about your complaints, focus on your gratitude.

When times get tough, everyone must make a fundamental decision: complain or be grateful. In an environment where negative sentiment is rampant, the consequences of this decision are much greater. Complaining only attracts negative thoughts and people. Gratitude, on the other hand, creates the opportunity for the best thinking, actions, and results to emerge. Focus on everything you are grateful for, communicate this, and open yourself to the best possible consequences.

 Click here to download the full PDF version.

Final Thoughts

We can pontificate all day long on the short-term causes of the rises and falls of markets, but I don’t think it does much good. I let the algorithms worry about those. It’s the larger trends we have to be personally aware of.

I sound like a broken record, but volatility is the new normal.

• Markets exist to trade, and if there’s no “excitement” on either side, trades don’t happen.
• Trades are getting faster, which means more information has to confuse both the buyer and the seller.
• You’re no longer competing solely against companies and traders like you. It’s like the cantina from Star Wars; you’ve got a bunch of different creatures (and bots) interacting and fighting with each other, trying to figure out how to make their way through the universe.

Pair that with all the fear and uncertainty, and you’ve got a recipe for increased volatility and noise. That means that the dynamic range of a move will be wider and happen in a shorter period of time than ever before. You’ll hear me echo this thought over the next few years as the ranges continue to expand and compress. Cycles that used to play out over weeks now take days or hours. The game is still the same; it just takes a slightly different set of skills to recognize where the risks and opportunities are. 

Today’s paradigm - both in life and trading - is about noise reduction. It’s about figuring out what moves the needle and focusing only on that.

The crucial distinction is between adding data and adding information. Adding more data does not equal adding more information. In fact, blindly adding data increases your chances of misinformation and spurious correlations.

My final comment is that there’s a difference between investing and trading, and while humans can invest, if you’re “personally” still trying to trade - you’re likely playing a losing game. If you don’t know what your edge is, you don’t have one. 

If you’re investing, I’ll advise you to act like a robot. If you removed human fear and greed from your decision-making - what would you do?

Keep calm and carry on.

Capturing Gold

The Olympics have officially concluded.  For many, it was the ultimate display of the thrill of victory and the agony of defeat.  For others, it's a way to boast about their country's medal count.  If you're curious, here are the final medal standings.

One of the most captivating moments occurred in the men's 100-meter sprint.  It made me reflect on how years of preparation can come down to a few thousandths of a second determining the difference between Gold, Silver, and Bronze — or virtual irrelevance.

Last week, Noah Lyles broke a 20-year U.S. drought in the men's 100m final, winning gold with a 9.784 time.

Lyles came into the race ranked No. 1 in the world, but he had to run his fastest time ever to win the Olympic gold medal, and he did so by the slimmest of margins — 0.005 seconds.

In that race, Lyles achieved an average speed of 25.7 mph, and his max speed hit 27.84 mph.

Surprisingly, Lyles didn't lead the race until the final and most important moment.  Many thought that Jamaica's Kishane Thompson had the gold ... but advanced technology showed that Lyles surged ahead in the final stretch, edging Thompson out by a split second to claim victory.  Here is the photo finish.

 

via ESPN

It took over half a minute (much longer than the race itself) for the judges to announce the winner - it was that close. 

As a tech nerd, what I found most interesting about the win was the camera used to certify the win. 

Omega, which has been the official Olympics timekeeper for decades, released a new camera that shoots 40,000 frames per second, aimed directly at the finish line.

It reminded me of the facial recognition technology NFL teams like the Dallas Cowboys use to track - theoretically - every person who steps into a stadium.  The cameras are so good that when a crime is committed, they can completely track the perpetrator as they travel throughout the stadium.  The Cowboys' security office boasts that their camera system surpasses even the ones used by Las Vegas casinos to catch cheaters at the gaming tables.  However, it seems like Omega has taken things to a whole new level at the Olympics with its advanced camera technology this year.

Many think the 200m race is Lyles' specialty.  His personal best of 19.31 seconds in the 200m is the American record, making him the third fastest in the event.

Unfortunately, Lyles couldn't grasp gold in the 200.  He got Bronze instead.  However, after the race, he revealed that he ran the race with COVID ... which might explain his drop in performance.  Still, it stands as a testament of will to me.

As a side note, while the International Olympic Committee does not pay athletes for winning at the Olympics, many countries do!

 

via Voronai

While the U.S. isn't near the top of the list - American athletes who get gold bring home $37,500.  A silver nets you $22,500, and a bronze nets you $15,000. 

Of course, these medals can also lead to other compensation and endorsements - but the payout table was still interesting.

The achievements of athletes like Noah Lyles create national pride and open doors to numerous opportunities and rewards.

Meanwhile, the integration of advanced technology in the Olympics highlights the importance of innovation in sports.  As we celebrate these victories, we also look forward to the future advancements that will continue to shape the world of athletics and the world itself.

The 2.9 Trillion Dollar Drop

Last Friday was the stock market’s worst day since COVID. 

The media says weak job reports and recessionary fears fueled it.  Geopolitics might have played a part, too.

Over 2.9 Trillion Dollars got wiped out. 

To visualize what happened, here is a market heatmap of the S&P 500 index stocks categorized by sectors and industries.  Size represents market cap.  There was very little green in a sea of red.

 

via FinViz

Last year, I asked if we would see a recession in 2024?  Here is an excerpt from that post:

 

I want to remind people that the U.S. is resilient, and it seems like public sentiment is moving in a positive direction. 

That said, 84% of CEOs and 69% of consumers think we're headed toward a recession. Meanwhile, the Fed is positive we won't ... and banks are almost positive we won't. 

It seems like they know something we don't ... or maybe vice versa. 

To lend some credence to the bullish sentiment, consumer spending is still high despite inflation and interest rates. In addition, Retailers are still posting solid earnings.

Unfortunately, we're increasingly seeing consumers resort to borrowing (including short-term lending options) to pay for goods. Household debt has hit a record high of $17 trillion in March.

— Are We Going To See A Recession In 2024?, October 2023

Yes, last week was potentially alarming.  Even the ordinarily resilient tech giants took a hit. 

With the unemployment rate reaching 4.3% in July, the three-month moving average is at least 0.5 percentage points above the minimum of the previous 12 months’ averages.  This triggers the Sahm rule, which supposedly signals a recession.  According to the rule, reaching the 0.5% threshold indicates a recession.  When the jobless rate rises quickly, it suggests the economy is slumping.

But, even the inventor of the rule, Claudia Sahm, says the doomsday narrative may be overblown. 

I’m not here to tell you that everything is sunshine and roses, but I am here to remind you that no indicator exists in a vacuum.  While the negative performance is real, household income is still growing, and consumer spending and business investment remain resilient.

Not to mention that with graduation, there’s a massive increase in the workforce, which also impacts the numbers. 

Recessions can build slowly - but come quickly - but as they build, there is time to react ... and even better - there is time to not ‘react’ but ‘respond’. 

AI will likely impact the workforce, business, and eventually ... the economy. 

I’ve learned that the market often feels random because you can’t predict events like global pandemics, threats, assassinations, or cybersecurity outages.

Over time, I’ve focussed less on guessing what will happen and more on responding faster and better to what happens.

With that said, I do have an opinion here.  It’s an election year, and I suspect the government will push every button and pull every lever to boost the market leading into November.  Even though markets and the economy are not the same thing, many voters believe they are.  So, I would say this correction is perfectly timed ... and I anticipate a steady ramp-up so that people feel as good as possible about the economy when they vote.

What do you think is going to happen?

2024 Update: What Happens In An Internet Minute

The Internet is both timeless and timely in an interesting way.  While what's popular changes seemingly instantly, and what we're capable of doing on it continues to grow exponentially.  Ultimately, the Internet is the digital town square of a global village, where all types and professions gather. 

In 2011, I first wrote about what happens in 60 seconds on the Internet. 

I've since updated the article a few times.

• 2014
• 2018

Each time I write the article, I'm in awe at the amount of data we create and how much it has grown.  For example, looking back to 2011, I was amazed that users created 600+ new videos and 60 new blog posts each minute.  Those numbers seem quaint today. 

 

via DOMO

Shortly after I started sharing the articles, Data Never Sleeps started standardizing the data, which is helpful. 

Today, the Internet reaches 5.4 billion people.  Most of them also use social media. 

To add some more perspective, 

• In 2008, 1.4 billion people were online; in 2015, we were at 3 billion.  Now, that number has almost doubled again. 
• In 2008, Facebook only had 80 million users, and Twitter (now X) had 2 million users.
• In 2008, there were 250 million smartphones, and now there are almost 7 billion of them!

It is mind-blowing to consider what happens each minute on the Internet today.  For example, the 104,000 hours spent on Zoom represents a significant societal shift ... and the over 500 hours of video uploaded to YouTube highlights the incredible amount of content that's being created to share. 

In 2023, the world created approximately 120 zettabytes of data ... which breaks down to approximately 337,000 petabytes of data a day.  Broken down even further, it calculates to more than 15 Terabytes of new data created per person. 

The calculations about what happens in an Internet minute will change rapidly again because of AI.  Consider the amount of computing power and data it takes to power all of these new GPTs. Now, imagine the amount of new data that AI is creating.  Then, try to imagine the challenge we'll have figuring out what's real, what's made up, and what is simply wrong or intentionally misleading.

In addition, as more devices and digital WHOs start creating and sharing data, it's hard to fathom the ramifications and sheer increase in data. 

I'm curious about what the next five years have in store for us as we approach the 40th anniversary of the World Wide Web. 

Cognitive Biases & The Consequences of Labeling

“Words can be twisted into any shape. Promises can be made to lull the heart and seduce the soul. In the final analysis, words mean nothing.
They are labels we give things in an effort to wrap our puny little brains around their underlying natures,
when ninety-nine percent of the time the totality of the reality is an entirely different beast.
The wisest man is the silent one. Examine his actions. Judge him by them.”
― Karen Marie Moning

Continuing with the theme of cognitive biases, the upcoming election has me thinking about the consequences of labeling things, creating boxes, and simplifying ideas into news-ready headlines.

With more news sources than ever and less attention span, you see ideas packaged into attention-grabbing parts.  The focus isn't on education or the issues, but on getting the click, making your stay on their page longer, and sending you to a new article utterly unrelated to why you clicked on the page.

Complex issues are simplified – not even into their most basic forms – but instead into their most divisive forms ... because there's no money in the middle.

via Quote Investigator

The amplified voices are those on the fringe of the average constituents' beliefs – precisely because those are the ones who are often the most outspoken.  We might think that because they're the voices we hear, these fringe messages fairly represent what people like us believe or think ... but they rarely do. 

Issues that should be bipartisan have been made "us" versus "them," "liberal" versus "conservative," or "right" versus "wrong." The algorithms many of our information sites use create echo chambers that increase radicalization and decrease comprehension. 

Identity politics have gotten so strong that you see families breaking apart and friend groups disintegrating ... because people can't imagine sharing a room with someone with whom they don't share the same values. 

In psychology, heuristics are mental models that help you make decisions easier.  They're a starting point to save mental bandwidth, allowing you to spend more brain cycles on the important stuff.

That's a great use of "boxes" and "simplification"… but it shouldn't eliminate deeper and more nuanced thought on important issues. 

Most situations are nuanced, and the "correct" answer changes as you change your vantage point.

In an ideal world, we'd consider every angle.  I recognize that's not realistic.

Instead, I encourage you to remember to continue to think and learn ... even about things you already know.  And, if you become familiar with the most common cognitive biases, you can hopefully identify them in your thinking and decision-making.

Confirmation Bias is one of the more common forms of cognitive bias.  Here is an infographic that lists 50 common cognitive biases.  Click to explore further.

 

via VisualCapitalist

Important issues deserve more research.  New insights happen between the boundaries of what we know and don't.  Knowledge comes from truly understanding the border between what you are certain and uncertain about. 

I challenge you to look beyond the headlines, slogans, and talking points you like most.  Look for dissenting opinions and understand what's driving their dissent.  Are they really blind or dumb (or are their value systems just weighted differently)?

Not everything needs to be boxed.  Not everything needs to be simple.  You should explore things and people outside of your comfort zone and look to see things from their point of view ... not your own. 

Recently, I've started using a website and news app called Ground News.  They claim to be a news platform that makes it easy to compare news sources, read between the lines of media bias, and break free from algorithms. 

As discussed above, online news and ad-driven algorithms have made it profitable for news outlets to embrace a position on the bias spectrum to target specific consumers.   That bias in the media affects everything from what events receive coverage to how a news outlet frames those events in their reporting.

As media outlets narrow their perspective and range of coverage, I use Ground to help me get a well-rounded view of important issues and become aware of my blind spots.

Applying This Lesson  

“I am ashamed to think how easily we capitulate to badges and names, to large societies and dead institutions.”
― Ralph Waldo Emerson, Self-Reliance

I love learning a lesson in one space and applying it to other spaces.  It's one of the cool things about AI.  An algorithm can learn rules in the construction space that may help in the medicine or trading space.  Everything's a lesson if you let it be.

In that vein, the lesson on labeling also applies to yourself and your business.  Don't get me wrong - naming things is powerful.  It can help make the intangible tangible.  However, don't let the label (or your perception of the label) stop you from achieving something greater. 

Many things are true because we believe them to be, but when we let go of past beliefs, the impossible becomes possible, and the invisible becomes visible.  

Hope that helps. 

“Words can be twisted into any shape. Promises can be made to lull the heart and seduce the soul. In the final analysis, words mean nothing.
They are labels we give things in an effort to wrap our puny little brains around their underlying natures,
when ninety-nine percent of the time the totality of the reality is an entirely different beast.
The wisest man is the silent one. Examine his actions. Judge him by them.”
― Karen Marie Moning

Continuing with the theme of cognitive biases, the upcoming election has me thinking about the consequences of labeling things, creating boxes, and simplifying ideas into news-ready headlines.

With more news sources than ever and less attention span, you see ideas packaged into attention-grabbing parts.  The focus isn't on education or the issues, but on getting the click, making your stay on their page longer, and sending you to a new article utterly unrelated to why you clicked on the page.

Complex issues are simplified – not even into their most basic forms – but instead into their most divisive forms ... because there's no money in the middle.

via Quote Investigator

The amplified voices are those on the fringe of the average constituents' beliefs – precisely because those are the ones who are often the most outspoken.  We might think that because they're the voices we hear, these fringe messages fairly represent what people like us believe or think ... but they rarely do. 

Issues that should be bipartisan have been made "us" versus "them," "liberal" versus "conservative," or "right" versus "wrong." The algorithms many of our information sites use create echo chambers that increase radicalization and decrease comprehension. 

Identity politics have gotten so strong that you see families breaking apart and friend groups disintegrating ... because people can't imagine sharing a room with someone with whom they don't share the same values. 

In psychology, heuristics are mental models that help you make decisions easier.  They're a starting point to save mental bandwidth, allowing you to spend more brain cycles on the important stuff.

That's a great use of "boxes" and "simplification"… but it shouldn't eliminate deeper and more nuanced thought on important issues. 

Most situations are nuanced, and the "correct" answer changes as you change your vantage point.

In an ideal world, we'd consider every angle.  I recognize that's not realistic.

Instead, I encourage you to remember to continue to think and learn ... even about things you already know.  And, if you become familiar with the most common cognitive biases, you can hopefully identify them in your thinking and decision-making.

Confirmation Bias is one of the more common forms of cognitive bias.  Here is an infographic that lists 50 common cognitive biases.  Click to explore further.

 

via VisualCapitalist

Important issues deserve more research.  New insights happen between the boundaries of what we know and don't.  Knowledge comes from truly understanding the border between what you are certain and uncertain about. 

I challenge you to look beyond the headlines, slogans, and talking points you like most.  Look for dissenting opinions and understand what's driving their dissent.  Are they really blind or dumb (or are their value systems just weighted differently)?

Not everything needs to be boxed.  Not everything needs to be simple.  You should explore things and people outside of your comfort zone and look to see things from their point of view ... not your own. 

Recently, I've started using a website and news app called Ground News.  They claim to be a news platform that makes it easy to compare news sources, read between the lines of media bias, and break free from algorithms. 

As discussed above, online news and ad-driven algorithms have made it profitable for news outlets to embrace a position on the bias spectrum to target specific consumers.   That bias in the media affects everything from what events receive coverage to how a news outlet frames those events in their reporting.

As media outlets narrow their perspective and range of coverage, I use Ground to help me get a well-rounded view of important issues and become aware of my blind spots.

Applying This Lesson  

“I am ashamed to think how easily we capitulate to badges and names, to large societies and dead institutions.”
― Ralph Waldo Emerson, Self-Reliance

I love learning a lesson in one space and applying it to other spaces.  It's one of the cool things about AI.  An algorithm can learn rules in the construction space that may help in the medicine or trading space.  Everything's a lesson if you let it be.

In that vein, the lesson on labeling also applies to yourself and your business.  Don't get me wrong - naming things is powerful.  It can help make the intangible tangible.  However, don't let the label (or your perception of the label) stop you from achieving something greater. 

Many things are true because we believe them to be, but when we let go of past beliefs, the impossible becomes possible, and the invisible becomes visible.  

Hope that helps. 

Making News Beautiful Again

My mother watches the news religiously.  To her credit, she watches a variety of sources and creates her own takeaways based on them.  Regardless, there's a common theme in all the sources she watched – they focus on fear or shock-inducing stories with a negative bias.  As you might guess, I hear it when I talk with her.

While I value being informed, I also value things that nourish or make you stronger (as opposed to things that make you weak or less hopeful).

Negativity Sells. 

Sure, news sources throw in the occasional feel-good story as a pattern interrupt ... but their focus skews negative.  History shows that stories about improvement or the things that work simply don't grab eyeballs, attention, or ratings as consistently as negativity-focused stories do.

The reality is that negativity sells.  If everything were great all the time, people wouldn't need to buy as many products, they wouldn't need to watch the news, and this cycle wouldn't continue.

It's worth acknowledging and understanding the perils our society is facing, but it's also worth focusing on the ways humanity is expanding and improving.

As a brief respite from the seemingly unending stream of doom and gloom, Information Is Beautiful has a section focused on "Beautiful News".  It's a collection of visualizations highlighting positive trends, uplifting statistics, and creative solutions.  It's updated daily and can be sorted by topic.  I suggest you check it out.

 

Beautiful News via Information Is Beautiful

If you're looking for more "good news," here's a list of 10 sources focusing on good news. 

Let me know if you have a site you'd like to share.

Have a great week!

Some Timeless Wisdom From Socrates

Small distinctions separate wise men from fools ... Perhaps most important among them is what the wise man deems consequential. 

This post discusses Socrates' Triple Filter Test, which involves checking information for truth, goodness, and usefulness.  It also explores how this concept applies to decision-making in business and life by focusing on important information and filtering out the rest.  The key to making better choices and staying focused is to avoid damaging or irrelevant information.

Socrates' Triple Filter

In ancient Greece, Socrates was reputed to hold knowledge in high esteem.  One day an acquaintance met the great philosopher and said, "Do you know what I just heard about your friend?"

"Hold on a minute," Socrates replied. "Before telling me anything, I'd like you to pass a little test. It's called the Triple Filter Test."

"Triple filter?"

"That's right," Socrates continued.  "Before you talk to me about my friend, it might be a good idea to take a moment and filter what you're going to say. That's why I call it the triple filter test.

The first filter is Truth.  Have you made absolutely sure that what you are about to tell me is true?"

"No," the man said, "Actually I just heard about it and…"

"All right," said Socrates. "So you don't really know if it's true or not. Now let's try the second filter, the filter of Goodness.  Is what you are about to tell me about my friend something good?"

"No, on the contrary…"

"So," Socrates continued, "You want to tell me something bad about him, but you're not certain it's true.  You may still pass the test though, because there's one filter left.  The third filter is Usefulness.  Is what you want to tell me about my friend going to be useful to me?"

"No, not really."

"Well," concluded Socrates, "If what you want to tell me is neither true, nor good, nor even useful … then why tell it to me at all?"

With all the divisiveness in both media and in our everyday conversations with friends, family, and strangers ... this is a good filter for what you say, what you post, and even how you evaluate markets, the economy, or a business opportunity. 

How Does That Apply to Me or Trading?

The concept of Socrates' Triple Filter applies to markets as well.

When I was a technical trader, rather than looking at fundamental data and scouring the news daily, I focused on developing dynamic and adaptive systems and processes to look at the universe of trading algorithms to identify which were in phase and likely to perform well in the current market environment.

That focus has become more concentrated as we've transitioned to using advanced mathematics and AI to understand markets. 

Filter Out What Isn't Good For You.

In contrast, there are too many ways that the media (meaning the techniques, graphics, music, etc.), the people reporting it, and even the news itself appeal to the fear and greed of human nature.

Likewise, I don't watch the news on TV anymore.  It seems like story after story is about terrible things.  For example, during a recent visit with my mother, I listened to her watch the news.  There was a constant stream of "oh no," or "oh my," and "that's terrible".  You don't even have to watch the news to know what it says.

These concepts also apply to what you feed your algorithms.  Garbage in, garbage out.  Just because you can plug in more data doesn't mean that data will add value.  Deciding what "not to do" and "what not to listen to" is equally as important as deciding what to do. 

Artificial intelligence is exciting, but artificial stupidity is terrifying. 

What's The Purpose of News for You?

My purpose changes what I'm looking for and how much attention I pay to different types of information.  Am I reading or watching the news for entertainment, to learn something new, or to find something relevant and actionable?

 

 

One of my favorite activities is looking for new insights and interesting articles to share with you and my team.  If you aren't getting my weekly reading list on Fridays - you're missing out.  You can sign up here. 

By the way, I recently found a site, Ground News, that makes it easy to compare news sources, read between the lines of media bias, and break free from the blinders the algorithms put on what we see.  I'd love to hear about tools or sites you think are worth sharing.

Getting back to Socrates' three filters and business, I often ask myself: is it important, does it affect our edge, or can I use it as a catalyst for getting what we want?

There's a lot of noise out there competing for your attention.  Stay focused. 

Onwards!