It’s important to remember that markets aren’t rational and, at times, market participants will not act in a rational manner.
Confirmation, recency and affirmation biases, as well as performance chasing, are just a few of the regular mistakes wealth managers see investors make, especially in volatile markets as experienced throughout this year.
These cognitive biases, identified by behavioural economists, explain why investors find themselves making the same mistakes time and again.
In this podcast, hosted by business journalist Mudiwa Gavaza, Adriaan Pask, chief investment officer at PSG Wealth, discusses common biases that tend to shape investor behaviour, and explains the importance of recognising and challenging such biases when making investment decisions.
This article was paid for by PSG Wealth.
Affiliates of the PSG Konsult Group, which includes PSG Wealth, are authorised financial services providers. Visit psg.co.za for more information.
