Asset allocation processes need to protect us from ourselves

Grant Mizens  |  MLC Asset Management  |  19 February 2020  |  0.50 CE

The ability for investment practitioners to entertain the prospect of outcomes (risk) significantly different to those currently visible is a perennial challenge. To mitigate the multitude of behavioural biases working against the ability to envisage what could go wrong, a scenarios approach to mapping future uncertainty is useful. Scenarios design imposes a discipline on the practitioner to dispassionately consider a comprehensive range of potential futures. It provides a valuable tool for preserving robust decision making during times of high market con...

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