Recency bias: the latest event is not the whole story
Recency bias: the latest event is not the whole story
Recency bias gives excessive weight to recent experiences.
The latest fall or rise may dominate attention.
However, recent does not mean representative.
One unusual day does not explain all market behavior.
Old information is not credible merely because it is old either.
Evidence should fit the question.
In a hypothetical example, label short and long periods separately.
Then examine how sensitive the conclusion is to the chosen period.
This comparison does not guarantee future repetition.
Recognizing the bias helps distinguish freshness from importance.