[COMMENT: The content of this news story (on cognitive biases) is highly recommended reading. But make sure to read the factual content in the context of the news article, and be careful not to accept this as financial advice.]
(26 August 2015, AFR, p22, by Jeremy Chunn )
‘When markets are struck down violently and suddenly, as they were early this week around the world, no one who holds growth assets should be surprised. Investors who say they have the stomach for risk now have a better idea what risk is. Instead of panicking or becoming paralysed with fear, investors should attempt a “cognitive reframing”, behavioural finance specialist Simon Russell says.’
Also read more about Simon Russell (Behavioural Finance Australia) and cognitive biases.