Behavioral Bias in Investment Decisions

As a private wealth manager, you are conducting a review meeting with your client, Thomas, who is experiencing significant anxiety about an impending economic downturn. During the meeting, Thomas expresses a desire to shift a large portion of his equity investments into cash holdings, despite recent financial models indicating his portfolio is still within risk tolerance. He mentions that he is influenced by negative news headlines about the economy and worries about the future of the stock market.

Which behavioral bias is primarily affecting Thomas's decision-making in this scenario?