On thinking ahead when markets get murky
Neuroscientist Malcolm MacIver's work on electric fish highlights their limited planning abilities due to their murky aquatic environment, which evolved a reflexive brain optimized for immediate responses. In contrast, land-based fish developed better eyesight and cognitive functions, enabling advanced planning. Despite humans having evolved beyond water, primitive brain functions still influence our reflexive actions, leading to challenges in long-term planning. In the current murky market influenced by AI advancements, investors face uncertainty about the necessity of stocks and companies. Jeff Bezos, noting that planning beyond twenty minutes is unwise in such conditions, suggests focusing on what will likely remain unchanged in the next decade. Popular investment advice shifts towards cryptocurrencies, with a mix of caution and unrecorded variables, highlighting the unpredictability of the future. Adopting a balanced approach between stability and adaptability may be key for investors navigating today's uncertain landscape.
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