Buy Low, Sell High sounds simple but clients need a framework

The following presentation was delivered at PortfolioConstruction Forum Summit 2017, the theme of which was "The winds of change".

Synopsis
Despite increased awareness of behavioural finance, evidence confirms investors' poor timing with managed funds due to performance chasing. The world is probabilistic, but industry communication revolves around forecasts, opinions and outcomes, over-emphasising recent success. Markets present huge challenges – dealing with social pressures, processing information and timeframes. Clients benefit from understanding the investment journey. Most learn via anecdote and analogy - but key knowledge includes the range of outcomes and coping with feelings of loss aversion and FOMO. Having prepared responses to scenarios improves the chance of success. This framework is simply "Buy Low, Sell High".

Presenter
Douglas Isles, Investment Specialist, Platinum Asset Management (Sydney)

Paper(s)
Loss aversion, "FoMo", anxiety and mistiming

Presentation - Recorded 14 February 2017 (21 mins)

  Slides       Podcast

More info - Contact Platinum Asset Management