Investors: How to Keep Your Head When Markets are Tumbling

Focusing on the negatives won't help you as an investor, says behavioural scientist Steve Wendel. Instead, stick to your personal investing strategy

Steve Wendel 9 November, 2016 | 4:19PM

I didn’t get much sleep last night. Regardless of politics, I couldn’t help thinking about the crash that was already looming when I switched off the computer at midnight last night. What that meant for my family, and what it meant for our retirement goals.

I’m a behavioural scientist and a valuation driven investor, and I can easily rattle off some of the behavioural biases at work at this moment.

Vividness bias: I cannot help but fixate on dire market scenarios. What havoc would a trade war wreak?  

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Steve Wendel  is Head of Behavioural Sciences for Morningstar

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