March 3, 2015

How Recent Events Hinder Your Investment Return

“Investors should be conscious of the recency bias when developing their portfolio. The recency bias is the habit to assume recent trends in market activity will continue well into the future. This is dangerous because purchasing the asset category that recently did well is often the equivalent of "buy high and sell low." The recency bias can cause us to make unproductive modifications to our portfolio based on recent market movements.” From David Swapp at Net Worth Advisory Group. Learn more about how to avoid allowing recency bias to negatively affect your investment returns.

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