So, how can we see the world without mental biases?
I am as susceptible to these biases as my clients but to avoid big behavioural errors here are a few remedies that my colleagues and I have implemented:
* Look outside the community of brokers, bankers and investors and seek alternative perspectives on the conomy, perspectives such as those of taxi drivers, doctors, check out clerks in supermarkets, regulators, etc. Such perspectives can provide a sanity check on what’s happening in the economy
* Spend at least as much time on digging up “primary data” from customers, competitors, suppliers, policymakers, etc, as you do on desk research
* Finally, travel and socialise widely and thus expose yourself to unfamiliar sights, sounds, tastes, smells and cultures. Allow yourself to be taken to new realms of emotion and thereby take your mind away from the biases that drag you down.