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Recency Bias (Q1/2016)

Recency Bias (Q1/2016)

Recency Bias. We are all prone to recency bias, meaning that we tend to extrapolate recent events into the future indefinitely. Following the January 2016-sell-off period:

Q1/2016 Market Sell-Off (quote)The peak recommended stock weighting came just after the peak of the internet bubble in early 2001 while the lowest recommended weighting came just after the lows of the financial crisis. That’s recency bias.

link/10 most common Behavioral Biases: