Armchair Critic: I resolve to make better decisions in 2018

Beware confirmation bias

clock • 6 min read

Both of the New Year resolutions of Professional Adviser's Armchair Critic Brendan Llewellyn relate to behavioural finance - but he knows enough about the subject to realise they are easier resolved than done

The past few years have seen much greater discussion about the various biases to which consumers and investors are susceptible. While behavioural finance has been an almost compulsory topic for any investment conference, however, it is less easy to talk about our own biases. So my 2018 resolution - just the one - is to resolve to make better decisions. Guideline one: whenever I talk of other peoples biases - automatically flip the question back on me. In other words, what bias am I suffering from today? Today I am mostly suffering from confirmation bias. So, I am open to evidence to s...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Apprentice stars call for more financial advice as online businesses surge

Apprentice stars call for more financial advice as online businesses surge

‘Crucial that young entrepreneurs receive the right guidance to manage their finances’

Sahar Nazir
clock 03 April 2025 • 2 min read
Trump pushes ahead with global 'reciprocal' tariffs, sending markets into a tailspin

Trump pushes ahead with global 'reciprocal' tariffs, sending markets into a tailspin

20% on EU, 10% on UK

Sorin Dojan
clock 03 April 2025 • 2 min read
Model portfolios continue to dominate UK adviser channel sales in H2 2024

Model portfolios continue to dominate UK adviser channel sales in H2 2024

ISS MI report reveals rising net sales with model portfolios driving growth

Sahar Nazir
clock 03 April 2025 • 3 min read