Investors face an emotional rollercoaster in the year ahead as stock market volatility surges driven by a combination of policy changes from the Trump administration and the removal of fact-checking on social media sites, behavioural finance experts, Oxford Risk warn. Its analysis shows knee-jerk emotional reactions to market swings cost investors an average of 3% each year in returns and predicts losses could soar this year as a perfect storm of volatility drives investors to make mistakes and invest in assets they may not even understand.
Oxford Risk says behaviourally-driven financial advice software can help investors and advisers avoid emotional mistakes, but warns that without these solutions in place, investors will likely experience an emotional rollercoaster...
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