I was really pleased to have an audience of 117 for my: Bulls, Bears, We Are All Sheep presentation at the CISI.org chapter in Guernsey. It was the subject, Behavioural Finance that pulled them in of course. But I was flattered. They even arranged a lovely sunny day.
This is the seventh time I have presented this CPD course regionally but the biggest audience yet. It is a great subject and allows me to play a few games by displaying biases in my market professional audience. Good humoured but a point well made. Even sophisticated and experienced wealth managers and fund managers can fall foul to known, predictable and increasingly measurable biases.
The serious point is that these biases explain why the market behaves as it does. It is made up of people making super-human instinctive choices but they are occasionally overconfident, want to stock with the staus quo, give undue weight to recent experience, fear losses so much they respond by increasing risk….People are not computers. In some respects their brain is much more powerful than any computer built to date, but it has faults too. Some faults cannot be fixed even when you know them.
The FCA are aware of the ease with which wealth managers and designers of financial products can easily manipulate consumers. They warn us they are aware of it and will deal with abuses the same way they deal with any other abuse. You can download their warning HERE. Come and learn at the course I regularly present at the CISI Behavioural Economics – The FCA and your clients – CISI CPD Course.