Every day we make numerous judgements and decisions. As the human brain has evolved it’s developed little short-cuts, or ‘heuristics’. These mental pathways circumvent multi-stage decisions and allow us to make judgements quickly and efficiently. While heuristics are helpful and allow us to function without stopping to think about our next action, they can – and do – lead to cognitive biases. These biases sometimes trip us up leading to bad judgements and poor decisions.

“Just like investment cycles, where markets move and investment options go up and down, it’s important to know about the cycle of our emotions”

Have you ever made yourself suffer through a bad movie because, having paid for the cinema ticket, you felt you had to get your money’s worth? Some people treat investment the same way.

Morphic Asset Management’s Head of Macro and Risk Geoff Wood outlines five tips we apply to manage risk.

Every market cycle – bull or bear – provides opportunities for investors to improve their process for investing. The best thing to do is learn from past events and apply those lessons to your future investment strategies and circumstances.

It is said that a bubble is just a bull market that you’re not in. A pithy one liner that neatly captures the fine line between good fundamentals and overvalued assets.

Why overcoming our worst human impulses can have great rewards.

Oliver Cromwell, in the opening battle of the English civil war in 1642, is reported to have told his Roundhead troops, “Put your trust in God, my boys, but keep your powder dry.” Or in today’s common application, “Keep calm and take precautions so you can ‘let rip’ when the opportunity presents itself.”