Trustnet Magazine 61 April 2020 | Page 20

Your portfolio “People struggle to make good decisions without information about the risks they face. Selling makes people feel better in the short term, even if it is not the right move in the long term,” adds Wiggins. Equilibrium Asset Management founder Colin Lawson explains that, in environments such as this one, where we are seeing massive volatility, “our certainty takes a huge bashing and our desire for control leads us to take action”. “The biggest example we have seen of that has to be the bog roll and pasta scenario we’ve got going on at the moment,” he says. “We’re thinking ‘what do they know that I don’t? That seems a good idea, I’ll go and stockpile too’. And, before you know it, the shelves are empty.” 20 / 21 “People struggle to make good decisions without information about the risks they face. Selling makes people feel better in the short term, even if it is not the right move in the long term” trustnet.com