the extent of not making an investment, even in times of available opportunities.
Impact on Investing: Investors afflicted with recency bias become over-optimistic following a time of rising markets or, conversely, over-cynical after a downturn in markets. For instance, after experiencing a rally in markets, one would expect constant gains; conversely, after witnessing a market crash, fear will dominate investment decision-making to the extent of not making an investment, even in times of available opportunities.