Armchair Critic: I resolve to make better decisions in 2018

Beware confirmation bias

clock • 6 min read

Both of the New Year resolutions of Professional Adviser's Armchair Critic Brendan Llewellyn relate to behavioural finance - but he knows enough about the subject to realise they are easier resolved than done

The past few years have seen much greater discussion about the various biases to which consumers and investors are susceptible. While behavioural finance has been an almost compulsory topic for any investment conference, however, it is less easy to talk about our own biases. So my 2018 resolution - just the one - is to resolve to make better decisions. Guideline one: whenever I talk of other peoples biases - automatically flip the question back on me. In other words, what bias am I suffering from today? Today I am mostly suffering from confirmation bias. So, I am open to evidence to s...

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