Every day, the Information Age bombards us with massive amounts of data.
Experts now estimate that there are 40 times more bytes of data in existence than there are stars in the whole observable universe.
And like the universe, our datasphere is also rapidly expanding—and every few years, there is actually more new data created than in all prior years of human history combined.
Searching for Signals
On a practical level, this dense wall of impenetrable data creates a multitude of challenges for investors and decision makers alike:
- It’s mentally taxing to process all the available information out there
- Too much data can lead to “analysis paralysis”—an inability to make decisions
- Misinformation and media slant add another layer for our brains to process
- Our personal biases get reinforced by news algorithms and filter bubbles
- Data sources—even quality ones—can sometimes conflict with one another
As a result, it’s…