What Is Availability Bias?
Availability bias is judging how likely something is by how easily examples come to mind. In markets
it makes recent, vivid events feel more probable.
The bias
You overweight what is vivid and recent, a
crash you just watched, a scary headline.
The fix
Rare events feel common. Weigh base rates,
not just what springs to mind.
Sentiment data counters the loudest story with the fuller picture.
Source: CFGI
Markets