What I have been experiencing
for years

Instincts negatively influence investment decisions

The technologization of the investment world since the 1990s has led - in addition to enormous speed and processing efficiency - to an increasing number of investors acting more and more simultaneously and basing their decisions on risk models that have a similar effect. Global information availability in real time and media commentary aimed at ratings have a self-referential effect, with a viral impact on the emotionality of investors in times of stress. Little will change in people's behavior. Primal instincts will always assert their influence. A better understanding of the interplay between financial economics, neuroscience and psychology is important and right. At least after market corrections, this will allow us to better justify why the event occurred.

Whether we like it or not, volatility dominates in the short term, influenced to a greater or lesser extent by the limbic system depending on the market phase. But in the medium and longer term, positive (real) returns dominate the stock markets. Despite fear psychoses and emotional exuberance: the market is guided by economic laws and fair values, ultimately driven by the sum of dividend yield and dividend growth. Anyone who is on the move without a compass, i.e. a strategy, will go astray, with a great risk of crashing if he cannot correctly assess the risks and their temporal dynamics.

Those who know what they are doing, or who co-invest with experienced investors in the same boat, will not lose their bearings even in the fog of expected imponderabilities.