Negativity Bias: Rattlesnakes and Bunnies
I just wrote about recency bias and how it can affect how we process information. You’ll come to find that I’m a fan of behavioral finance and it often influences my analysis of the markets. I think understanding how humans tend to think and act can help us manage wealth. So, it shouldn’t come as a surprise that the thing I was thinking about on my way home from a week in New York was another psychological phenomenon: Negativity Bias.