Advertisement
Build Your RIA Your Way with Betterment Advisor Solutions
Betterment Advisor Solutions is the all-in-one custodial platform purpose-built for independent RIAs. Get the technology and support to serve more clients, more efficiently, across investing, retirement, and cash.
There’s not going to be another 1929
At least, I don’t think so…
Human beings are pattern-matchers. It’s in our DNA. Our great great great great great ancestors 100,000 years ago knew that a stampede of zebras on the Serengeti was indicative of there being predators in the area. Those who could match that pattern with previous mauling deaths for the tribe knew to run and were thusly able to pass their DNA on. Those who saw the galloping zebras and did not detect the pattern ended up as lunchmeat for something with big teeth and claws. Their descendants are not with us today, because there weren’t any. Multiply this remote example times a billion instances of primitive human pattern-matching and you come to the realization that there is an evolutionary reason why most of the investing public is constantly on bubble watch. We can’t help it.
Dr. Sam Goldstein cites the father of modern neuropsychology, Alexander Luria:
Seeing patterns in the environment was a vital survival mechanism. Integrating Luria's theory highlights how early humans likely relied on simultaneous processing to interpret complex environmental cues. For instance, recognizing that certain animal tracks near water sources were indicative of prey required synthesizing spatial information about the environment, the visual pattern of tracks, and the temporal context (e.g., recent rainfall or animal migration seasons). This synthesis enabled early humans to make decisions that improved their chances of successful hunting, enhancing survival.
Simultaneous processing also underpinned the recognition of celestial patterns that informed timekeeping and planning. Early humans who observed the consistent movements of heavenly bodies—such as the sun's rising and setting or the moon's phases—demonstrated a capacity for integrating spatial and temporal elements into a cohesive understanding of cycles. This understanding allowed them to predict weather, seasons, and resource availability changes. Luria's framework helps explain how early humans recognized these patterns and integrated them with existing knowledge and memory, creating a mental model of their environment that supported complex decision-making.
Given how finely attuned the human brain has become to the seeking of patterns for the sake of our very survival, it’s no wonder we’re seeing 2008, 1987 and 1929 everywhere we look. Humanity did not evolve with financial markets. We’ve only got about 300 years or so of stock trading and most of us can trace back the first person in our family to ever buy or sell a financial instrument to within a few generations. Adrenaline, on the other hand, is not 300 years old. It’s ancient. Our brains evolved to ensure we could survive the physical forests, not the jungles of Wall Street.
Andrew Ross Sorkin live in-studio
As nice a guy as you think he is.
I met Andrew almost ten years ago when he had put together a New York City dinner table full of Bitcoin enthusiasts and skeptics from both the emerging crypto world and the traditional Wall Street world (guess which role I was there to play) and we hit it off. Our paths have crossed at dozens of CNBC and industry events since and I was lucky enough to have attended some of his legendary DealBook Summit events over the years too. But we’ve never really been on-air together so getting a chance to talk to him on my own turf at The Compound was really exciting.
Compounders Nicole, John and Duncan with the Notorious A.R.S.
Andrew’s new book is an absolute home run for anyone who wants to understand perhaps the greatest financial calamity in American history. Sorkin writes it like a screenplay, putting you into the real conversations and decisions that are taking place among characters that begin to feel real and present as the narrative unfolds. If you don’t enjoy this telling of the story, maybe reading books just isn’t for you.
You can get your copy here if you don’t have it already.
We thoroughly enjoyed making this episode and the feedback so far has been over the top. Views in the first 48 hours have already broken 40,000 on YouTube which is a pace that 86% higher than usual. Audio downloads are screaming as well. I appreciate you guys helping us start the year out strong. If you’re not subscribed to The Compound’s regular email blast (free!), this is your signal to get into the game - we’re going to be doing a lot more for you, the fans, all year.
The boys are back in town, the first live TCAF taping of ‘26
You can watch and listen to this episode at the links below. Cheers!
It's not 1929, but it might be - Andrew Ross Sorkin
THE COMPOUND & FRIENDS
The Case for a Year-End Melt-Up
Michael Batnick and Downtown Josh Brown are joined by Andrew Ross Sorkin to discuss: 1929 vs today, looking back at the SPAC mania, the art of the interview, Andrew's dream guest, and much more!
