Recency bias is believing what occurred in the recent past will continue to occur in the future. Investors consistently fall victim to this bias. It's the main contributor to the complacency we see ...
This is the ninth article in the Behavioral Finance and Macroeconomics series, exploring the effect behavior has on markets and the economy as a whole and how advisors who understand this relationship ...
For all the talk about how political and media bias distort people’s perceptions of current events, another kind of bias may have an even greater impact: Recency bias. Put simply, recency bias is the ...
Do you know what “recency bias” is? If so, when was the last time you had a heart-to-heart conversation with yourself about it? Recency bias isn’t complicated. It is the tendency we have to take ...
Recency bias is a behavioral finance principle that can cost investors money. It causes people to rely on recent events, such as a steep drop in the stock market, when making future choices. The ...
Recency bias is an underappreciated challenge in data analytics, particularly when historical data is used to draw trends and make predictions. Rolling Stone recently updated its list of the 500 ...
Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it. When making investing decisions, it may seem like we have to predict the future.
"Recency bias" states that more recent memories come to mind more quickly. But specific ideas and objects that have “stood the test of time” can overcome recency bias. How do we take longevity into ...
Imagine watching an NBA basketball game, and Lebron James is having a terrific game. He has just made six shots in a row. The game is close, and Lebron is clearly lining up to take another jump shot.