Please click the link below to view Shane’s Oliver views on why investors need to be aware of the psychology of investing.
Key points raised are
- Investment markets are driven by more than just fundamentals.
- Investor psychology plans a huge role and helps explain why asset prices go through periodic booms and busts.
- The key for investors is to be aware of the role of investor psychology and the influence on their thinking.
- The best defence is to be aware of past market cycles and avoid being sucked into booms and spat out during busts
- If you are looking to trade it should be on a contrarian basis, accumlating when the crowd is panicking, lightening off when it is euphoric.
