 Originally the term was coined by , and was defined as "the avoidance of apparently risky financial situations by pretending they do not exist", but since it took the slightly broader meaning of "avoiding to expose oneself to [financial] information that one fear may cause psychological discomfort".For example, in the event of a market downturn, people may choose to avoid monitoring their investments or seeking out further financial news.explain differences in returns in the fixed income market by using a psychological explanation, which they name the "ostrich effect," attributing this anomalous behavior to an aversion to receiving information on potential interim losses.