The Ostrich Effect

The tendency to ignore an obvious risky situation by pretending it doesn't exist.

Have you ever been told, "You've got your head in the sand?" I have. I've ignored many obvious, negative situations. The name of this bias comes from the legend that ostriches bury their heads in the sand to avoid danger. In behavioral finance, the ostrich effect is the avoidance of apparently risky financial situations by pretending they don't exist.