Definition
The tendency to notice information that supports what you already believe and to brush off what doesn't.
The story
If you're sure the market is heading higher, every bullish headline feels important and every warning sign feels like noise. It's a human habit, not a character flaw, studied for decades by psychologists.
Why markets watch it
Actively looking for the case against your own view is one way to guard against it.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms