As investment professionals, we’ve all heard managers referred to as “stopped clocks”, being right only twice a day. I was one such manager, being bearish for a good 10 years of my 25-year investment career. Every risk that I perceived was like a game of “Whack a Mole”, causing me to see only selling opportunities. Little did I know that my body’s physiological response to stress made it difficult for me to change my way of thinking.
Understanding your body’s stress response mechanisms is an important factor in objective investment decision making.