← Cognitive Bias Cards
Cognitive Bias Cards · Card 4
Recency Bias
The latest event looms largest.Older ones mattered too.
- This week
- The long history
- One bad week feels like proof
- Calmer, and more data
The most recent event looms largest in memory, crowding out older events that were just as important, or more.
In Practice
One bad week in the market feels like proof investing is dangerous, even though it's one data point in a much longer, calmer history.
Generic Example
One bad flight makes flying feel unsafe, even though the hundred uneventful ones before it were just as real.
Ask yourself
Am I weighing this because it's actually important, or because it just happened?
Shows up in Biases