White paperBehavioural Finance
It is very easy to use behavioural finance as an interesting source of anecdotes and stories about how we’re all ‘irrational’ in amusing ways. This white paper outlines how we at Barclays have used this knowledge to create practical investing applications.
Investors deviate from good investing practice because good long-term investment decisions are invariably uncomfortable along the way. Our behavioural finance approach is not to ignore this human need for comfort, but to acknowledge it and ensure that we can help each of our clients achieve it as efficiently as possible.
Only by having a practical system that addresses their needs for emotional comfort along the journey will investors be able to endure the ride, and get to the end with the sort of returns they should.