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Cherry-Picking Data and Narrative Fallacies

13 minPRO
3/6

Key Takeaways

  • Cherry-picking data means selecting only evidence that supports a conclusion while ignoring contradictions.
  • Watch for trough-to-peak returns, survivorship-filtered track records, and median-price distortions.
  • The narrative fallacy creates false confidence by making past outcomes seem predictable and inevitable.
  • Evaluate data sources critically: Who produced the analysis? What data was excluded? What is their incentive?
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Test Your Knowledge

1.What is cherry-picking in data analysis?

2.What is the narrative fallacy?

3.How can you evaluate whether a data claim is cherry-picked?