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Normalcy Bias: How It Could Affect Your Investing

Financial Concepts

Definition

Normalcy bias describes the tendency to miscalculate the potential negative impact of a crisis or an adverse event. People often have a hard time coming to terms with the urgency of a disaster or an emergency, sticking to the belief that nothing serious will happen and that the situation will go back to normal, even if there are warnings indicating otherwise. It’s commonly referred to as denial. T

In Panel Profits

In the Panel Profits market platform, Normalcy Bias: How It Could Affect Your Investing applies standard financial concepts principles to comic assets and physical collections.

Common mistakes

Do not infer unobserved prices.