Recency bias
Risk & psychologyOver-weighting recent events when estimating future probabilities.
In plain terms
Why retail money flows into smallcaps after two good years, which is structurally the worst time.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Over-weighting recent events when estimating future probabilities.
Why retail money flows into smallcaps after two good years, which is structurally the worst time.