January 29, 2014

Regarding investing, what is recency bias? What harm can it do? How can you deal with it effectively?

4 thoughts on “January 29, 2014”

  1. Garrett Haag says:

    Recency bias is when you only look at the big move something has had recently, such as gold, you could get cough up in a bubble due to it. You need to look farther in the past then just the last few years on things.

  2. Mike Finley says:

    Outstanding, Garrett! Let’s review.

    Recency bias causes us to put too much emphasis on what just happened (this could be yesterday, this month, this year, or even this decade) and too little effort into understanding an investment based on a long term time horizon. You end up chasing performance and that will cost you dearly in many cases.

    Follow Garrett’s advice, look far into the past and review historical returns on ANY investment you are considering AND make sure you consider all costs when looking at your return on that investment. This will help you take emotion out of the equation as you do with the facts. This is how you become the wise and efficient investor!

  3. Angelica says:

    that you want to look at when you’re looking at your blog posts is the body of your ctneont. Did people actually read all the way through? Or did they kind of leave in the middle? Did they bounce away quickly? Or did they watch the whole

  4. Edhie says:

    The differences of my pteanrs are their appearances, ways of educating children and personalities. My father enjoys jogging every weekend. While my mother, she likes to be couch potato when she is off work. Through their life style, you can imagine that my mother is fatter and unhealthier than my father. Their personality traits reflect the way they educate us. My mom is a sensitive woman who cares about everything related to us including our wealth and academic work. Whenever there is a symptom of sickness such as sneezes and sore throats, my mom is the one who gives us a hot ginger tea. She notices our efforts on study and thus she does not set many standards of our grades. While my father who pays our education fee tend to asked us to have higher academic performances so that we can have more opportunities to get a good job. He always looks into the distances and has many preparations for future rather than look into the present as my mom does. They only have one common that is enjoy cook desserts such as chocolate cake and cheese cake when they are in good moods.

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