The power of compound returns is startling and the mathematics in favour of starting to save early in life is undeniable.
As markets continue to be wax and wane due to ongoing coronavirus fears and subdued employment and economic recovery numbers, it seems timely to remind ourselves of the types of behavioural and emotional biases that could lead to potentially risky investment behaviour, and how you can avoid them.
As human beings we are not well wired for the rational, dispassionate approach that economists love to think of as “normal”.
Despite what the market recovery late in the financial year may imply, the economic fallout from COVID-19 will be long-lasting and the outlook remains highly uncertain.