"Of all the cognitive
biases that influence human behavior, recency bias is by far the most harmful
to long-term investors. This is the tendency for investors to project their
most recent experience into the future. In doing so, investors are assuming
that what has occurred in the recent past will continue to occur indefinitely.
At the same time, investors are also assuming that if something hasn’t occurred
in the recent past, it won’t happen in the future."
