One of the things we love to do as humans is take the recent past and project it indefinitely into the future. We do this in good times and in bad times. Turns out, there’s a name for that. It’s called recency bias. And the only solution we know for recency bias is to lengthen your definition of the recent past. In other words, shift your focus from days into decades.
This concept is simply communicated in this illustration below from author and New York Times columnist Carl Richards.
To find out more about how any of these measures may be of assistance in your individual circumstances, please contact Gordon Thoms or David Conte at Calibre Private Wealth Advisers on ph. (03) 9824 2777 or email us here.
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