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Looking to invest? Take stock of your preconceptions first

As investors we do better to look for counter-arguments than to succumb to anxiety and bearishness

By Andy Davis  

Beware of rose (or any other) tinted spectacles when investing. Photo: Flickr/Derek Gavey

Among the biggest challenges investors face are our own preconceptions—the particular tint of the spectacles through which we observe the world. We all tend towards confirmation bias, which leads us to seize upon evidence that supports our existing point of view to the exclusion of all else.

When things look worrying and uncertain, as they do in the UK today, I succumb all too easily to pessimism—the business environment is growing worse and markets are vulnerable…

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