Follow the Leader

By | 2017-07-17T12:21:22+00:00 April 18th, 2017|Global Market Update|

Do we suffer from an “expert” bias? Photo: Christopher Michael. Source: Flikr We tend to trust the views of experts, especially when it’s about something we haven’t experienced ourselves. If I haven’t travelled to Antarctica, I’ll generally trust someone who’s actually been there – even if they travelled to the islands on the Antarctic Peninsula, and I’m headed for the South Pole – over 1500 miles away. This is natural. When we’re in unfamiliar territory, we want a guide. We look for someone to [...]

Thinking About Investing (Part 3)

By | 2017-07-17T12:23:02+00:00 March 4th, 2015|Global Market Update|

Why do our brains make it so hard to make money? Source: Magdalenesmuse Thinking is hard work. Concentrating hard on a task drains sugar from key parts of the brain. So we use shortcuts to help us make decisions. We draw pictures; we remember past experiences; we tell ourselves stories to explain the data. […]