Identifying Recency Bias in Investment Decisions

Adrian, a financial advisor, is conducting a review meeting with his client, Lucy, who has a net worth of $5 million and a background in scientific research. In their conversation, Adrian notices that Lucy's decisions about her investment portfolio have been heavily influenced by recent market trends and media reports, leading her to sell off her diversified assets in favor of a few trending technology stocks. Although he has advised her against reacting impulsively to short-term performance, Lucy remains convinced that she must act quickly to capitalize on perceived opportunities.

During this review meeting, Lucy references her recent substantial gains from these stocks and argues for a more concentrated investment strategy. Adrian recognizes that her approach aligns with behavioral finance concepts, including the 'herding effect' and 'disposition effect.' Recognizing these biases, Adrian considers how best to counsel her on the risks of her current path.

What behavioral finance bias explains Lucy's inclination to concentrate her investments in a few successful technology stocks despite Adrian's advice?