#207: Will rising interest rates and inflation affect your long-term investment plans?
Word on the Street
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The Effect of Biases on Investing
The action bias is where you want to do something when there's uncertainty, even though it might not be the best thing to do. Sometimes during times of uncertainty, we want to feel like we're in control and therefore we might take action just for the sake of taking action. It can be used to think about how people might be responding during uncertain times with their market. They might make decisions which aren't necessarily helpful and in response to factors which have already been priced in by the market. And if we are stuck in traffic, it would be much more effective to be able to zoom out to a bird's eye view and assess the situation objectively.
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