PERSONAL FINANCE
SIMON BROWN: Know your biases
Recency bias, where the events of right now cloud our memory of the more distant past and thoughts of the future, is a dangerous factor in decision-making, whether you are buying a house or a share
30 March 2023 - 05:00
As humans we are a mess of contradictory cognitive biases that often cause us to make poor decisions, even as we think we're evaluating the available data with a clear head.
Recency bias is perhaps the worst of the many cognitive biases. Simply put, it means we give recent events far more importance than they actually deserve, while ignoring or downplaying older, as well as future, data points...
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