My colleague Paul Nixon, who is head of behavioural finance at Momentum Investments, has dug deeply into how our behaviour influences our investments.
Paul has coined the term “behaviour tax”, which refers to how our investment behaviour – triggered by our innate response to market movements – can have negative financial implications.
This phenomenon is very real and we see it frequently.
For example, during Covid-19, we saw a wave of investors “jump ship” on unit trusts in fear, because