Investment decisions can be heavily swayed by our emotional responses to immediate context – but often these matter a lot less than we think. Whether politics matters when it comes to the markets, and how “being human” can have an impact on investment performance, will be discussed at an event in Dublin this Wednesday.
The keynote speaker at the event, which is being hosted by the Chartered Institute for Securities and Investment, is Greg Davies, head of behavioural and quantitative investment philosophy at Barclays.
He will discuss how investors’ emotional reactions to geopolitical events, market turmoil, current affairs and the thought of political change can have a significant impact on people’s decision-making and potential investment success.
He will also illustrate how investors’ search for emotional comfort can potentially drive behaviour that affects investment success, influence a portfolio’s performance and can see investors forgo considerable annual returns.
“There has never been a moment in history when it wouldn’t have been possible to find an excuse from current political events not to invest,” he says.
Frank O’Riordan, president of the Chartered Institute for Securities and Investment, said one of the main things the institute’s members want is help in keeping up to speed with developments in financial services.
“At a time when we’re constantly bombarded with news, information, data, analysis and commentary from hundreds of experts, figuring out the right thing to do in investing is a key issue.”
Meanwhile, the presence of women in the executive ranks of Europe's leading employers is expected to continue to grow, according to preliminary data from consulting group Mercer, but their advances in broader professional ranks may stall in the years ahead.
These findings are from Mercer's second annual When Women Thrive, Businesses Thrive report on the global outlook for diversity and women in the workplace, and will be the focus of a webinar taking place this Wednesday.
The report argues that one of the most significant factors limiting the growth potential of countries around the world is the fundamental participation and engagement of women in their workforce.
Eliminating the gap between male and female employment rates could boost countries’ GDP by as much as 34 per cent, it says.
