The Emotional Investor

THE EMOTIONAL INVESTOR Economics tell us that, or assumes, that individuals (which includes investors) act in a rational manner – that they are fully informed and make logical, sensible decisions. The news of Altair Asset Management returning investor funds at an “overvalued and dangerous time in this cycle” sent a quiver through the investment community. Has this ever been done before? A fund manager, who by definition makes his living by managing funds, emphatically saying to investors the market is cooked and I can’t manufacture any further returns for you. See: https://www.businessinsider.com.au/the-4-reasons-this-fund-manager-cashed-in-all-his-australian-shares-2017-6 Then this was followed up by the Australian Treasurer Scott Morrison terrifying markets with the dire warning of over Australia’s GDP growth forecasts. http://www.smh.com.au/federal-politics/political-news/treasurer-scott-morrison-sounds-warning-over-economic-growth-in-march-quarter-20170601-gwhud2.html And then the barrage of Doomsayers started warning us of a property crash, another recession, interest rate rises, the systemic issues […] 150