This Wednesday I attended a Morningstar event about behavioural economics in downtown Toronto. It was quite fascinating and enlighting. Some personal takeaways as below.
1, People are more IRRATIONAL than rational, not only in investing activity, but also in our daily life. The more we realize this, the higher chance we can save ourselves.
2, Don’t try to predict the markets. Don’t have strong bias before making investment decisions.
3, People + AI (or computer assisted system)= Enhanced people. Systems and rules are more reliable than people.
4, Behavioural coaching is part of financial advisor’s daily job.
I’ll pay more attention to behavioural economics topic afterwards. Read the “Nudge” first by this month.