08 Sep Representativeness

Curious Investor Behaviour – Number 11

Representativeness

Many of us react to the daily avalanche of data by adopting shortcuts – we tend to generalise from a small sample, creating stereotypes and false patterns.

An example of this may be the assumption that Chinese shares have participated in the current economic boom in the region. You might be surprised to discover the Shanghai Composite Index has been falling for the last
four years and only now looks to be turning upwards. Should you think twice before arriving at conclusions in a hurry?

Disclaimer: Platinum Asset Management Limited ABN 25 063 565 006 AFSL 221935 (Platinum ®) has commissioned this illustration  for your reading enjoyment. There is no intention to provide investment advice, and information presented does not take into account the investment objectives, financial situation and/or particular needs of any person or class of persons. Platinum offers financial products. Further information and a Product Disclosure Statement can be obtained from www.platium.com.au or by phoning 61 2 9255 7500 or 1300 726 700. Before making any investment decision, it is important that you consider (with your financial adviser) your particular investment needs, objectives and financial circumstances. Platinum is a member of the Platinum Group of companies.

About Reuben Zelwer   Reuben Zelwer established Adapt Wealth Management in 2011 to help time poor clients achieve financial freedom. For over 15 years, Reuben has helped professionals, executives, business owner and those approaching retirement make the most of their circumstances by making good financial decisions. Reuben’s professional practice is complemented by substantial voluntary work, which has included setting up financial literacy and savings programs in the local community.