Behavioural economists warn investors about a trap known as “confirmation bias”. This involves deciding on a course of action and then looking around for evidence to support that action. The proliferation of online investment newsletters and blogs means that investors can almost immediately find someone, perhaps a so-called expert, who agrees with them. In short, the trouble with “confirmation bias” is that it blocks out contrary opinions and research. As investors try to come to terms with the outlook for lower returns in this low-interest environment, they may be particularly vulnerable to falling into the trap of “confirmation bias” as […]