National Bank Investments
Home Products
Price and performance
Firms and managers
Expert insights
Resources
Regulatory documents
About us
CLOSE

Behavioural Finance: Combining markets, investments and psychology

15 January 2021 by National Bank Investments
Glass Box Series

Behavioural finance (BF) resides at the intersection of economics (markets), finance (investments) and psychology. It studies the impacts of psychological, cognitive, emotional, cultural and social factors on the financial decisions of individuals. It affects every phase of life, from how investment beginners plan their financial projects and future plans, to how retirement-age investors approach a change in strategy with caution.

BF fills the gaps of traditional economics and financial theory by focusing on a better understanding of how humans deal with money and perceive risk. Contrary to the more traditional approach – which assumes that all investors are fully rational and process relevant information equally well – behavioural finance assumes that people act in line with their beliefs, their biases and their personal emotional filters.

 

To continue reading, download the full document.

 

 

Legal notes

The information and the data supplied in the present document, including those supplied by third parties, are considered accurate at the time of their printing and were obtained from sources which we considered reliable. We reserve the right to modify them without advance notice. This information and data are supplied as informative content only. No representation or guarantee, explicit or implicit, is made as for the exactness, the quality and the complete character of this information and these data. The opinions expressed are not to be construed as solicitation or offer to buy or sell shares mentioned herein and should not be considered as recommendations.

National Bank Investments is a member of Canada’s Responsible Investment Association and a signatory of the United Nations-supported Principles for Responsible Investment.

©National Bank Investments Inc. All rights reserved. Reproduction in whole or in part is strictly prohibited without the prior written authorization of National Bank Investments Inc.

Categories

Categories