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Adjusting expectations

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One of our biggest challenges as human beings is adjusting our expectations when a trend reverses. We think housing prices are going to keep going up, gasoline prices are going to keep going up and free agent sports contracts keep going up.

But the need not keep going in the same direction. So when things change, it is sometimes hard to adjust one's expectations. A lot of baseball players [2] (HT: Jeff Bliss) seem to be struggling with this. They don't seem to have fully appreciated that the market for their talent is very different from what it was just a few months ago.

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