How the Baader-Meinhof complex robs you of sound investment se | Credclub

How the Baader-Meinhof complex robs you of sound investment sense?

When was the last time you picked up a song, a word or a term, and found that the term kept surfacing all around you? Before you read some grand designs of fate into it, know that there is a cognitive bias that explains this phenomenon. It is called the Baader-Meinhof phenomenon or the frequency illusion. What’s worse this cognitive bias can lead you into shoddy investments if you aren’t mindful. This phenomenon can persuade us into investing in a stock or virtual currency as we start attaching a notion of inherent value to the instrument simply because we come across its repeated references.

Have you experienced this in your investment journey?