Tag Archives: International Diversification

Staying the Course: Recency Bias and International Diversification

Staying the Course: Recency Bias and International Diversification by Jeff Holland{1:40 minutes to read} Recency bias—the tendency to make predictions about the future based on the recent past—is often used in investing. The problem with recency bias is that trends change all the time. Nothing is certain in investing.

Most investors want to be invested only in the “hot performers.” In the the 2000s, international markets were the hot performers. In more recent years, it’s been U.S. markets. Now, some people are questioning whether they should continue holding on to international securities.

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