Ted Richards

No, I don't think that's the case.

So we're not rational and not only that, we make predictable mistakes time and time again.

And I'm not saying that other people do this and I'm perfect.

I put myself in this category too.

So the study of behavioural economics is aware that we're not always rational and some of the decisions we make are influenced by biases.

And so...

I wanted to do that because I'd started at Six Park and I'd be speaking with clients and partners and different people within the industry about logical reasons, which are really important about asset allocation, keeping your fees low, diversifying, and all these fantastic important things.

But people, and once again, I put myself in this category, would be so influenced by something they saw in a newspaper a week ago or something they heard on the radio.

And all these irrational things happen.

We can be our own worst enemy.

It doesn't matter how much we dig deep into the logical aspects of investing or money management.

We need to be aware of these biases that we have because, as I said before, we can be our own worst enemy.

Right.

Yeah, there's a line I love and that is, when emotions are high, logic is low.

And I think, you know, at the time of recording it, what is it, mid-June, markets have had a pretty good... Yeah, everyone's pretty happy at the moment.

Yeah, everyone's pretty happy.

But I think the behavioural mistakes, you know, start to kick in when people get a bit nervous, they can't sleep at night, all these other... There's a story I've told a few times recently that...

If a neighbor of yours wins the lottery, the chances that you are going to go bankrupt actually significantly increase.

And that's because we are influenced by the money management of people around us.

So if someone all of a sudden starts...