Are hidden behavioural biases sabotaging your wealth?
1 in 3 Australians are now reporting financial stress. Discover how your cognitive biases may be influencing your financial decisions.
1 in 3 Australians are now reporting financial stress. Discover how your cognitive biases may be influencing your financial decisions.
For advisers who have perceived their value to clients as the ability to deliver positive returns year after year or be accurate forecasters of markets, they will be finding it hard to enunciate their value proposition in this complex age we live in.
Often these behaviours are the result of conditioned responses. We can have both good and bad investment habits. The key takeaway is understanding how they are created.
In his excellent book, The Power of Habit, Charles Duhigg explains why we continue to do self-destructive things. According to Duhigg, there are three components to forming a habit: cue, routine and reward.
Nick Bennett & Rowena Hardy, Partners of Minds Aligned have provided this thought-provoking article. Nick and Rowena are not only long term valued clients of Alman Partners but great friends also. Look up their business at https://www.mindsaligned.com.au/