Behavioural finance

Tame the inner caveman to succeed in market

The study of behavioural finance tells us one thing: that investing involves a decision-heavy process riddled emotion, that the outcome is uncertain, and most importantly, that we are absolutely not hardwired to do it well.

March 22, 2012

3 min read

Planning and Advice

Emotional nuances can impact investments

New findings in the burgeoning field of Neuroeconomics confirm emotions play a huge role in how people invest. Advisors look for extreme highs and lows in clients’ lives, studies suggest more subtle everyday emotions can also impact investment decisions.

By Lisa Kramer as told to Brynna Leslie |March 22, 2012

3 min read

Market Insights

Help clients worry less, invest more

Anchoring is a psychological condition that stems from a person’s upbringing and experiences

By Victor Ricciardi |February 3, 2012

3 min read

Planning and Advice

Help clients realize they can’t control success

Overconfidence can breed a tendency to diversify less and trade more aggressively, which creates challenges if you’re their advisor.

By Simon Gervais as told to Brynna Leslie |February 1, 2012

3 min read

Advisors ignore clients’ true risk capacity

Relying solely on risk-tolerance questionnaires to assess clients is wrong, Tom Idzorek of Morningstar told the New York Consultants Conference, hosted by the Investment Management Consultants Association (IMCA) earlier this week.

By Melissa Shin |February 1, 2012

2 min read

Men wealthier, women happier in retirement

A higher level of financial preparedness doesn’t necessarily make for a happier retirement. Or so it would seem from the BMO Retirement Institute Report, which found that despite being less financially prepared for retirement, women are more likely to enjoy their retirement than men. The report, titled Divergent Paths To Retirement: How Men And Women […]

3 min read

Advisors need to be emotional shock absorbers

Contrary to popular belief, making money is not the goal of investment. Money is a currency that buys emotional gifts. These gifts could be safety, security, freedom or self esteem; unique reasons why people invest money. It is imperative, therefore, that financial advisors address and mitigate clients’ behavioral biases, says Frank Murtha, managing director, Market […]

3 min read

Blogs, online media sway investor decisions

While regulators and compliance departments are slowing easing off restrictions for advisors’ use of social media, the public is already basing financial decisions on what they read online. A survey conducted for Investors Group found that 42% of Canadians who save and invest are using social and online media to guide their decisions. The preferred […]

By Steven Lamb |February 28, 2011

2 min read

Darling, I love you, but not your investments

Love is not just looking at each other, it’s looking in the same direction, goes the adage. But when it comes to money, Canadian men and women are neither seeing eye-to-eye, nor looking in the same direction. A recent RBC poll, aptly titled He Says, She Says, exposed the considerable gap between the sexes in […]

By Vikram Barhat |February 14, 2011

2 min read