Decoded Intelligence Signal
Recency Bias
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fundamentals
Verified: May 26, 2026Lexicon Core Definition
The cognitive tendency to overweight recent events when predicting the future — causing investors to feel most confident at market tops (after recent gains) and most fearful at market bottoms (after recent losses), exactly backwards from optimal behaviour.
Analysis Breakdown
The cognitive tendency to overweight recent events when predicting the future — causing investors to feel most confident at market tops (after recent gains) and most fearful at market bottoms (after recent losses), exactly backwards from optimal behaviour. Full explanation coming soon when Journey 6 content is ingested.