The study of behavioural finance reveals that investors form certain biases based on past experiences. These patterns of thought can lead to investment decisions that are driven by emotion rather than rationality.
To overcome these biases we need to be aware of them and understand how they can work against us.
One way to overcome investment bias is to work with an experienced and qualified professional to create a personal investment plan. By sticking with your systematic plan of action, you also free yourself from making day-to-day investment decisions that are subject to bias. In fact, we have found that investors who rely upon a professional investment process to guide them do the best over time!
Common biases are: confirmation bias, anchoring bias, recency bias, and herding bias.
Contact us regarding our “pension-style” portfolios which allow you to invest with confidence.
