Knowledge Tree
Recency bias
Facts (11)
Sources
Biases in Behavioral Finance - World Scholars Review worldscholarsreview.org Sep 15, 2024 4 facts
claimEmotional biases, such as herding bias, loss aversion, house money effect, mental accounting, recency bias, regret aversion bias, framing effect, hindsight bias, representative bias, and the endowment effect, are driven by feelings and emotions.
claimSulistiawan and Wijaya (2019) found that expert recommendations in group discussions helped reduce overvaluation when participants received negative news followed by positive news, as a method to mitigate recency bias.
claimRecency bias is defined as the tendency to overemphasize the importance of recent experience or the latest information when estimating future events.
claimSulistiawan and Rudiawarni found that individual decision-making after group discussions can lead to increased recency bias.
Behavioral Finance in the Markets: Identify Bias | Morgan Stanley morganstanley.com 2 facts
claimRecency bias is a behavioral finance bias where investors believe that recent market events will continue, often without fact-based data to support that projection.
claimBehavioral finance theory identifies recency bias as the tendency for investors to believe that recent events will continue, such as projecting that a market rally will continue without fact-based data to support that premise.
Behavioral Finance: The Psychology Behind Financial Decisions - Ava meetava.com Aug 8, 2024 2 facts
claimRecency bias is the tendency to place too much emphasis on recent events or information while under-weighting historical trends and long-term data, which can lead investors to incorrectly extrapolate recent performance into the future.
claimRecognizing the influence of biases like anchoring and recency bias can result in more disciplined, evidence-based investment strategies.
Impact of Economic Indicators on Investment Decisions - BI-SAM bi-sam.com Sep 9, 2025 1 fact
claimRecency bias causes investors to overemphasize the latest economic data releases.
5 Biases Affecting Your Investment Decisions | Global Credit Union globalcu.org 1 fact
claimRecency bias is an investing bias where individuals allow recent news or trends to influence their investment decisions, often leading them to chase the market or follow the herd rather than making planned strategic decisions.
Understanding the Human Side of Money: Behavioral Finance Basics thewealthguardians.com Jan 30, 2026 1 fact
claimRecency bias is the tendency to give more weight to recent events than to long-term data, which can cause emotional reactions during periods of market volatility.