Victory
ROME IF YOU WANT TO: Tune in for Rome, Season 1 (2005). Before HBO had an over-sexed, blood-drenched mini-series with dragons, they had an over-sexed, blood-drenched mini- series with legions. Watch Caesar cross the Rubicon and descend on Rome while intrigues play out amongst the nobility and plebs alike. Spoiler alert: It doesn’t end well for Caesar.
RUN AWAY: Train for a marathon. At the end, you will discover that the race had a fanfare beginning, a long torturous middle, and a merciful end. But you won’t remember much except the thrill of finishing. At least, so I have heard. Race promoters can thank the recency effect for filling fun runs and long-distance races nationwide. If it weren’t for this mental bias, the hours of pain would overshadow the achievement, and no one would ever run more than one.
HAVE A WINNING FANTASY: Less of a go getter? Perhaps you are one of the dozen or so people in America who still isn’t playing fantasy sports? Sign up and start drafting your team. Keep a tally counting the number of times you engage in recency bias while evaluating a player. Are you letting last year’s stats determine much of the rating instead of the overall prospect? Player age, coaching, and type of system matter just as much if not more. Perhaps it is recency bias that has kept you from hoisting the league trophy all these long years.
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Patrick Huey is the author of two books: "History Lessons for the Modern Investor" and "the Seven Pillars of (Financial) Wisdom"; this is considered an outside business activity for Patrick Huey and is separate and apart from his activities as an investment advisor representative with Dynamic Wealth Advisors. The material contained in these books are the current opinions of the author, Patrick Huey but not necessarily those of Dynamic Wealth Advisors. The opinions expressed in these books are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. They are intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed in these books is no guarantee of future results. As always please remember investing involves risk and possible loss of principal capital.