“Anchoring Bias”. Have you heard people saying, “Markets gave 23% this year, I hope I can earn at least 20% in the coming year”. If yes, then this is an example of Anchoring Bias which as the name suggests is about anchoring to values or numbers.
Here’s a ‘real-life’ illustration of Anchoring Bias in play:
Happy Investing!
RaVi
source: idfcmf
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