Beware the Confirmation Bias

Overview of LT Wealth's July 2020 client communication. Human behaviour is not random. We are all subject to our own personal biases that influence the way we interpret our surroundings and make decisions. One of the most common biases influencing today's investors is the confirmation bias. In this month's commentary: Nick Murray discusses the impact of the confirmation bias on investors, particularly as it relates to the common mistake of confusing short-term prices with long-term value. He takes a look at comments made by billionaire investor Stanley Druckenmiller in May 2020 and the influence they would have had on regular investors during the pandemic.  Nick concludes by highlighting how stress and fear can tempt you into taking cognitive shortcuts and how your financial advisor can help you deal with that temptation.   Quote of the Month: "What the human being is best at doing is interpreting all new information so that their prior conclusions remain intact."- Warren Buffett -- Terry Wright, CIM Portfolio Manager and Financial Adviser LT Wealth Management Partner www.ltwealth.ca Music Credit: BenSound -- Raymond James Ltd. is a Member of the Canadian Investor Protection Fund.