behavioural psychology


How advisers can tap into overconfidence bias for new client opportunities

Overconfidence is the natural enemy of the self-directed investor. It tends to lead to higher risks and lower returns. For advisers, overconfident investors present both a challenge and an opportunity. From a behavioural finance perspective, overconfidence means we tend to under-estimate the level of uncertainty in our decision-making. Overconfidence becomes particularly dangerous when paired with […]

Forecasts, far from the madding crowd

Warren Buffett’s wise decision to base himself in Omaha, far from the chatter of Wall Street, was affirmed by two recent news events. These events – the International Monetary Fund’s series of U-turns in early September on its widely scrutinised global economic assessment and the market’s increasingly confident bet that Bank of England governor Mark […]