Recency Bias

Human beings suffer from what is known as the recency bias. This means humans give too much weight to the most recent information they have consumed. Or in the parlance of the immortal Janet Jackson, "What have you done for me lately?" This bias can affect everything from investment decisions to employee performance reviews. So how to mitigate the effect of recency bias? While awareness of this bias is helpful, you'll need more to actually combat it. One way is to keep a log - of your investments and their outcomes, the work of employees or a record of your achievements if you are the employee. Or said another way be analytical and empirical. Look to the data - all of it before making decisoins.