Today we're going to piggyback of our conversation in the last episode by focusing in on recency bias and show you how the concept plays itself out among investors. As Michael will explain, recency bias is the tendency to give more weight to the most recent information when making decisions, which can often lead to skewed perceptions and poor financial choices.

Here's some of what we discuss in this episode:

• A look at the numbers from stock returns since 1928.
• Treasury bill rates are indicative of what you could be receiving inside money market accounts.
• We're almost right at historical averages for mortgage rates going back to 1964.
• How we build investment strategies with these biases in mind.

See the graphs referenced in this show:

Mortgage Rates: https://caffeinecashflow.com/wp-content/uploads/2025/01/Mortgage-Rates-since-1964-LBS.pdf

Treasury Bills: https://caffeinecashflow.com/wp-content/uploads/2025/01/Treasury-Bills-historical-rates-LBS.pdf

Large Company Stocks: https://caffeinecashflow.com/wp-content/uploads/2025/01/Large-Company-Stocks-LBS.pdf

Learn more: https://caffeinecashflow.com/

Get in touch with Michael-

Web: https://www.westpacwealth.com/team/michael-schulte

Email: [email protected]

Phone: 702-767-4897