“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. http://networthadvice.com/how-recent-events-hinder-your-investment-return/?utm_source=Mar+2015+Dave&utm_campaign=David+Mar+Newsletter&utm_medium=email
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