Confirmation Bias Flashcards
Enter a Filipino household with a staircase and begin chanting “Oro (gold), plata (silver), mata (death)”, taking one step up with each word. Most likely, upon reaching the top step, the chant will end with either oro or plata. This is because many Filipinos will go to great lengths to avoid ending in mata which denotes bad luck. The two preceding words on the other hand, obviously denote good fortune.
The number of steps of staircases at home should not be divisible by three
A very common line used by Filipinos when knocking on someone’s door is “Tao (person) po!“. Many assume it refers to the knocker calling out to ask if there are any people inside, when actually, it is said to stem from the knocker reassuring the people inside that s/he is a person and not a possibly harmful supernatural creature.
Reassure your host that you’re human
This superstition is called “sukob” and advises against siblings marrying within the same year as it is said to divide the luck between the two marriages. Another type of sukob advises against marriages within the same year as the death of an immediate family member. Pushing to do so is considered bad luck.
Another wedding-related superstition is that the bride should never try on her dress before the big day. This is said to bring bad luck and cause the cancellation of the union.
Siblings should not marry within the same year
This ever-present dish at Filipino gatherings is believed to represent long life. And while Filipinos today may joke and laugh about actually believing that this noodle dish is served for long life, it remains a staple at nearly every birthday feast.
Serve pancit (noodles) at celebrations, especially birthdays
Many superstitions still surround the beliefs in such creatures today. Among the most practiced is the saying of “tabi tabi po” (excuse me) when passing through places where elementals are likely to dwell. These places are usually outdoors, such as anthills and Balete trees. Failure to do so and disturbing such creatures may lead to unexplained sickness that can only be cured by an albularyo (folk healer).
Respect the elementals
refers to a type of selective perception that emphasizes ideas that confirm our beliefs while devaluing whatever contradicts our beliefs.
confirmation bias
refers to our all-too-natural ability to convince ourselves of whatever it is that we want to believe.
confirmation bias
In confirmation bias …
You are not seeking out objective facts
Interpreting information to support your existing belief
Only remember details that upholds your belief
Ignoring information that challenges your belief
may lead to clients overinvesting in a particular stock or sector.
Confirmation Bias
may lead to clients Bias interpretation, This is when we consciously interpret information in a way that confirms our belief
Confirmation Bias
According to Charles schwab of cerulli Associates, who has confirmation bias?
Gen x (58%)
Millennials (54%)
Silent Gen (53%)
Baby Boomers (49%)
Advisors say that ____ of their clients are affected by their confirmation bias, and ____ are affected
93%, 50%
SOURCES confirmation bias
Popular narratives
Cultural belief
family values
implications to investor
Investors often fail to acknowledge anything negative about investments they’ve just made, even when substantial evidence begins to argue against these investments.
Confirmation bias can cause investors to continue to hold under diversified portfolios. Many practitioners have seen clients become infatuated with certain stocks.
How to avoid confirmation bias
First and foremost, accept that you have biases that impact your decision-making.
Do your research thoroughly when searching for information.
Make sure you read entire articles, not just the headline, prior to drawing any conclusions.
