GYC Insights
Articles on real-life financial issues written to educate and enlighten.
Recency Illusion
Arnold Zwicky defined the Recency Illusion as ”the belief that things you have noticed only recently are in fact recent”. How does this illusion affect your investing decisions?
Overreacting During a Market Crash
Our analysis of markets over a 15 year period shows that markets go up more often than come down. In fact, the best market days typically follow a correction.
Market Volatility
The market events of January 2016 provide an opportunity to examine several questions important to investors and revisit some fundamental principles of investing in capital markets.
Forecasting - Getting You Nowhere Since 1970
Jason Zweig best described forecasting as an attempt to predict the unknowable by measuring the irrelevant. Unfortunately, that is what almost all financial institutions in this world are set up to do.
Attraction to Rising Prices
Don’t we all love a good discount? Yet when there is a huge discount in stocks, people run away! Why is this so?
Chasing Hot Themes
How many times do we have a certain mandate, only to switch to something else when we hear of a good idea from a magazine, a friend or the news?
Should Investors Sell After a “Correction”?
Contrary to the beliefs of some investors, dramatic changes in security prices are not a sign that the financial system is broken but rather what we would expect to see if markets are working properly.
Causal Connections
Understanding potential flaws in your thinking will make you more aware of how these may affect your investing behaviour.
Negativity Dominance
Our brain’s threat centre always gives priority to bad news. Why is this so? And how does this relate to risk aversion in investing?