Conservatism Bias

Conservatism Bias is the tendency of Investors initially underreacting to news due to conservatism. They overreact over longer periods due to Representativeness. Representativeness is when an investor sees things that look familiar and draw parallels between events that are not the same.

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Conservatism Bias Effect
Conservatism bias

Conservatism bias is part of general social science known as Behavioral Finance.