Wednesday's drop followed a Fed decision split by three dissenting votes and a fresh round of strikes on Iran, while the VIX jumped 13.45 percent before giving back nearly all of that spike by Thursday's open. Behavioural economists Daniel Kahneman and Amos Tversky's availability heuristic explains the pattern: the most recent, vivid input gets outsized weight regardless of whether the underlying situation has actually changed. Nine of the last eleven TSX sessions have moved more than 150 points, with no single day's move holding for more than two sessions.
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