# Narrative Fallacy

*Behavioral Finance — Finicade finance glossary*

The narrative fallacy is our compulsion to explain random outcomes with coherent stories. Financial media runs on it: markets fell today because of something, when most daily moves are noise. The cost is that a satisfying story feels like understanding, which raises confidence without raising accuracy — and stories built from survivors are the ones that circulate most.

**Also known as:** storytelling bias, narrative bias

**Related terms:** [Hindsight Bias](https://finicade.com/glossary/hindsight-bias), [Base Rate Fallacy](https://finicade.com/glossary/base-rate-fallacy), [Confirmation Bias](https://finicade.com/glossary/confirmation-bias), [Survivorship Bias](https://finicade.com/glossary/survivorship-bias), [Behavioral Biases](https://finicade.com/glossary/behavioral-biases)

Source: https://finicade.com/glossary/narrative-fallacy