Recency Bias

Are You an Investor or Just a Historian of the Last 12 Months?

Are You an Investor or Just a Historian of the Last 12 Months?

Behavioral Finance, Financial Markets, Investing, Recency Bias

There is a particular kind of confidence that comes from looking at a chart that only goes back one year. It feels like knowledge. It looks like research. But it is really just a very expensive form of nostalgia. Welcome to recency bias, the mental habit that convinces otherwise intelligent people that whatever just happened […]

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Why Your Brain Refuses to Imagine a Market Crash in a Bull Run

Why Your Brain Refuses to Imagine a Market Crash in a Bull Run

Behavioral Finance, Financial Markets, Financial Psychology, Investing, Recency Bias

There is a peculiar kind of blindness that only affects people who can see perfectly well. It does not strike in the dark or in moments of confusion. It strikes in broad daylight, when everything looks clear, profitable, and obvious. It strikes hardest when your portfolio is green and the charts keep climbing like they

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