what is anchoring and adjustment 
the anchoring and adjustment heuristic describes cases in which an anchor is subsequently adjusted based on new information until an acceptable value is reached over time often those adjustments however prove inadequate and remain too close to the original anchor which is a problem when the anchor is very different from the true or fair value correction july 21 2022 this article was updated to make clear a risk of anchoring resulting in buying overvalued assets or selling undervalued ones not buying undervalued assets and selling overvalued ones 