Podmore believes these biases can influence the way a client feels about their investments and encourage negative outcomes. For example he notes, that when sentiment is positive in the markets investors tend to favour action and end up buying at or near the high point. He said advisers need to do more to encourage a longer term view.
Podmore also says a recent investor survey by Schroders had found investors had an over inflated view of their abilities to invest, underlining the importance of good advice.
