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Unshackling Investment: Breaking the Anchor Bias The Invisible Handcuffs: Decoding Investment Anchors In the complex and often emotionally charged world of investment, decisions are rarely made in a vacuum of pure rationality. Investors, from seasoned professionals to eager novices, are constantly bombarded with a deluge of information – past performance figures, analyst price targets, initial public offering (IPO) valuations, and historical market highs. While seemingly objective, this initial data often morphs into a cognitive trap known as anchoring bias . This pervasive psychological phenomenon describes our tendency to rely too heavily on the first piece of information offered (the “anchor”) when making subsequent judgments, even if that information is irrelevant or misleading. Photo by Stephen Cantrel on Unsplash Currently, as global markets navigate periods of heightened volatility, rapid technological shifts, and unprecedented economic ...