The art of de-biasing investment decisions

OUR investment philosophy hinges on the art and science of human behaviour. In practice, we try to de-bias the members of our Wealth Management Investment Committee, individually and collectively.

The human brain always looks for causality behind different outcomes, even when the true cause cannot be observed. Just look at any financial report and you will find explanations for why the US dollar rose or stock markets fell.

On its own, this is not necessarily a problem. However, we also have a tendency to form shortcuts in our brain that use these explanations to try predicting what will happen in the future. This can often be detrimental to the accuracy of our forecasts.