Responding cautiously to uncertainty
Uncertainty sometimes demands action, but it pays not to jump the gun. We are firm believers in staying invested and history shows this is usually the best course of action, as this article examines.
Managing behavioural biases
Because uncertainty can have a strong emotional and cognitive effect, this may affect our ability to think rationally and make the most of our money. We explain some of the more common effects here – such as herd behaviour, loss aversion and status quo bias.
Our investment team has a wealth of experience in handling the biases that investors typically face. They always look to objectively assess the difference that taking an action, or not acting at all, will make.
Despite uncertainty, we remain focused on the long term
Our emotions can cause us to feel overwhelmed by uncertainty. Fears over the economy, and the political and social landscape can often affect both our wellbeing and how we manage our money.
But we believe, and the evidence shows, that it pays to be patient – and that the negative impacts of events or news usually recede over time. We therefore manage investments, and uncertainty, by taking a long-term approach, despite paying close attention to more immediate factors.
Uncertainty won’t vanish any time soon, but we can alleviate its effects by impartially interrogating facts and using the resulting insights to protect the interests of our clients.
Please remember that when investing your capital is at risk.