The recency effect plays a subtle but powerful role in investment decision-making. In essence, people tend to place disproportionate importance on recent performance while discounting the long-term lessons the market has taught us. In markets, this often leads investors to chase what has recently done well and abandon investments that may be temporarily underperforming. While it may feel intuitive to follow recent performance, it often leads to poor outcomes and missed opportunities. Consider this simple example: Two hypothetical portfolios, Portfolio A and Portfolio B, generate the same average return for four years straight, 8 percent annually. In the fifth year, however, growth stocks surge by 43 percent, while value stocks rise just 18 percent. Portfolio A, which leans into growth, now has far better one-, three-, and five-year average returns than Portfolio B. An investor looking at trailing returns might conclude Portfolio A is the superior strategy and move money accordingly. (These hypothetical returns and time periods shown are included strictly for illustrative purposes. These returns are not reflective of any investment strategy by the investment adviser nor are they the results of any client