Fundamentals of behavioral finance: recency biasFundamentals of behavioral finance: recency bias

Charles Schwab Investment Management

Investors can have emotional – and sometimes irrational – reactions to market activity, often due to behavioral biases. As an advisor, it's important to identify these so that you can provide the right guidance to your clients. In this article, we’ll provide an overview and actionable insights for the recency bias – placing too much emphasis on experiences freshest in your memory.