Recallability Trap : what is easiest to remember (often an extreme event) is overweighted.
Hindsight bias: is a selective memory of past events, actions or what was knowable in the past.
I found these two terms very similar. Any different between them?
Thank you!
Yes but former is referred to analysis and prediction of future trend in analysis.
Second is just behavioral bias and independent on analytical steps.
Thank you! Sounds like they are just the same concepts used in different environment.
the traps part has always in the Curriculum in the Capital Markets Expectation reading. (ASCORP)
They are a manifestation of the bias.
On the exam recallability tends to be stressed when an investor is looking at a small sample size of data–i.e. a recent analyst presentation, a newspaper they just read etc.