People have the tendency to believe that the accuracy of their forecasts increases with more information. This is the illusion of knowledge – that more information increases your knowledge about something and improves your decisions. However, this is not always the case – increased levels of information do not necessarily lead to greater knowledge. There are three reasons for this. First, some information does not help us make predictions and can even mislead us. Second, many people may not have the training, experience, or skills to interpret the information. And, finally, people tend to interpret new information as confirmation of their prior beliefs.
– John Nofsinger, Investment Madness