Chapter 16
Behavioural Finance
Let me introduce you to your investor self
‘The investor’s chief problem – and even his worst enemy – is likely to be himself.’
Benjamin Graham
Successful investing requires forming objective, emotionless and rational views about assets’ future performance. This is a key to correctly formulating an investment strategy matching your investment objectives.
Dynamic Strategic Asset Allocation (SAA) is used to position your portfolio for the long (5–10 years) and medium term (1–5 years). It is grounded on what markets are objectively implying. It does not necessitate you to form subjective views on how markets are likely to behave over the short term (up to 12 months).
However, you may wish to reposition your portfolio ...
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