Avoiding availability bias during market volatility
Focusing on available information about losses can lead to bad investment decisions.
AVAILABILITY HEURISTIC EXAMPLES
Another term for availability bias is availability heuristic. This emphasizes the mental shortcut our brains create to recall our personal examples as context for future predictions.
Talking with a financial planner during periods of market volatility can help you sidestep this behavioral finance investing trap.
If you have questions about your portfolio or are considering taking your money out sooner than expected, you and your planner can discuss and decide what is appropriate for you based on your long-term goals. If you don’t have a planner, contact us for a no-obligation review of your situation. We’ll connect you with a planner who will listen to your goals, help you avoid availability bias and can assist you in creating a financial plan for your future.