Death, taxes, and costs: The biggest performance drags on Asian portfolios
12 Jun 15
Brad McCosker, head of client portfolio management at First Degree Global Asset Management, looks at the seven biggest drags on Asian investment portfolios.
We all like to think that we are rational thinkers. For the most part, this is true and the mind is a wonderfully powerful tool. But does our intuition work well in the world of numbers and finance?
Daniel Kahneman, author of Thinking Fast and Slow, amassed considerable data on the psychology of judgement and decision-making, as well as on behavioural economics. A key finding of his work was that decisions are often made through intuition and heuristics as a substitute for a rational detailed decision making process.
“The framing effect, at its most basic definition, is when a choice between two possible decisions or beliefs is altered depending on how the choices are presented.”
