Watch out for the "Entrepreneurs of error" - Let data speak for itself

Reading the speculative history of the US real estate market by Harvard professor Ed Glaeser turned up the phrase "entrepreneurs of error". It is used to describe those that pushed real estate as investments even when there were clear signs of a bubble. They made money by selling beliefs of a robust market that were likely errors of reality. See "Paternalism and Psychology" and "A Nation of Gamblers: Real Estate Speculation and American History"

Investors must watch out for the entrepreneurs of error in other asset markets. They are suppliers of beliefs based on their vested interest in markets moving higher or lower. Asset managers want investors to have exposure to higher margin products over holding cash. Brokers want engagement in the next new idea to generate commissions. News organizations often sell beliefs in uncertainty to capture readers and listeners. Government supply beliefs in both stability and crisis to meet their agenda to maintain power. The selling of beliefs attempts to change perceptions for personal advantage. 

Ask the simple question Cui Bono? For whose benefit? 

Focus on data, not the entrepreneur of beliefs that may be in error. Let the data speak for itself.