Arnold Zwicky defined the Recency Illusion as ”the belief that things you have noticed only recently are in fact recent”. How does this illusion affect your investing decisions?

People often follow the herd. This can be devastating in investing.

How many times do we have a certain mandate, only to switch to something else when we hear of a good idea from a magazine, a friend or the news?

Understanding potential flaws in your thinking will make you more aware of how these may affect your investing behaviour.