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 ...

Recency bias is the tendency for people to overweight new information or events, projecting them into the future while ignoring long-term evidence. This bias causes many investors to engage in ...

Last week, I introduced the idea of “dumb” in investing: the tendency for very smart people to do very dumb things with their portfolios. We looked at how emotions can override a well-thought-out plan ...

Log-in to bookmark & organize content - it's free! RAND Corporation Strategy Director Jennifer Kavanaugh discussed the ideas of cognitive bias and examples such as motivated reasoning, recency bias ...

In all my years in this career and in studying markets, I have never seen recency bias as strong as it is today. Recency bias is a psychological phenomenon where individuals give more significance to ...