← Back to Academy

Recency Bias: Why the Recent Past Feels Like the Permanent Future

Behavioral Finance • Beginner Investing • 6 min

Recency bias is the tendency to give disproportionate weight to recent events when forming expectations about the future — treating what's happened lately as if it reveals a permanent pattern, rather than one chapter in a much longer, more varied history. During a sustained bull market, recency bias shows up as growing conviction that the rally will simply continue, purely because it has been continuing — an…

2 of 2 free lessons used

Create a free account to keep reading

You have read your 2 free lessons. Making an account is free and gives you 2 more straight away — plus your progress, streak and quiz scores saved as you go.

Learning through your school? Join your class — school students get everything, at no personal cost.