The Tom Dupree Show
Recency Bias Makes Having a Long Term Plan So Important
Recency Bias leads people to do things after they have already seen them happen. This happens not only in the stock market. It is almost like closing the barn door after the horse is already out. Investors sometimes make moves based on what has already worked. The goal is to buy low and sell stocks high. Often the reverse happens with the herd mentality and groupthink prevailing.