Days or Decades

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. Turns out, there’s a name for that. It’s called recency bias. And one good solution for recency bias is to lengthen your definition of the recent past. In other words, as New York Times Columnist Carl Richards shows in this sketch, shift your focus from days into decades. This is especially true when it’s been a painful week in the stock market. What if, instead of talking about the last ten days and the next ten days, we talked about the last ten years and the next ten years? How might that change our outlook on what actions we do or don’t take at that time?