Our theory as to why this particular week has a negativebias is related to those looking to add portfolio insurance via the purchase of options on indexes and exchange-traded funds.
Foreign journalists had been called to attend a meeting in February entitled "Honest and accurate reporting" by the information minister in order to be berated on what the government here perceives to be a negativebias in coverage of Nigerian affairs.
What I am suggesting is that sometimes, the when a negative event happens, investors overreact, throwing the baby out with the bathwater, and the collective negative cognitive bias often pushes a stock down by more than what the bad news and all its implications should result in.
Next time you hear a CEO dismiss a negative research report, take the trouble to investigate whether the analyst really did either display bias or make a rookie error.