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20 Aug 2019

Behavioral Finance: Rollercoaster of investment emotions

The vast majority of investors are consistently bad at dealing with uncertainty, underestimating some risks and overestimating others.

This behavior has been repeatedly played out over and over again during the past 28 years of my professional career and will continue to be repeated over the next 28 years.

Research into behavioral finance and behavioral economics has uncovered that our cognitive biases lead to our poor decision making are they are not random, in fact these mistakes are systematic and predicable which implies that they can be greatly reduced.

The key to overcoming these cognitive biases as an investor is to be aware of them before making a poor decision.

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At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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