Busting biases in volatile times

A behavioural checklist for investors facing turbulent markets

Samantha Lamas 20 May, 2020 | 12:51AM

Checlist


Our minds take shortcuts when we make decisions (When we aren’t sure where to order takeout from, for example, we look to online ratings to help us decide). Usually, these shortcuts are for the better.  They help us react quickly, and they help us manage the thousands of decisions we make every day.

There are times, however, that mental shortcuts lead us astray—that’s when they become biases. The complexity of our finances means that many of the shortcuts we use in everyday life can take us down the wrong path when we think about money—even more so when we’re stressed, distracted, unsure, and anxious, as many of us are today. There’s no way to erase our biases, but we can use tested techniques from behavioral science to prevent them from affecting our decisions.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Want More Actionable Content In Your Inbox?

Sign Up For Our Newsletter Here

About Author

Samantha Lamas  Samantha Lamas is a behavioural researcher for Morningstar

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies