Come on, do something!
We typically use these articles to discuss upcoming corporate earnings or other hot topics in the market.
The truth is, not much is happening in the markets right now. The S&P 500 is up a bit in the last month, inflation fears have abated, and central banks, well they haven’t done much lately.
The ASX 200 is trading around all-time highs, so that’s something.
But even that record breaking moment for the Australian market was less about a dramatic, market moving event, and more about a rather basic market reality. That is, stocks generally go up.
Regardless of all this, the individual investor has historically been and continues to be in a difficult position. Even as things boringly hum along, one particular issue facing investors right now is something known as decision fatigue.
As The Decision Lab put it:
‘Decision fatigue describes how our decision-making gets worse as we make additional choices and our cognitive abilities get worn out.’
While not much may be happening in the market right now, investors remain besieged by new information on a daily basis: traditional media like the AFR and Bloomberg; social media such as Twitter and Hot Copper; not to mention a whole range of faux gurus spruiking hot tips and stock courses.
Starved for tangible narratives, the market makes up its own stories. Even if they’re not very good ones. With that in mind… Which sources do you listen to? Which do you ignore? And when does inaction, boring as it may be, actually become the best option?
There’s a reason billionaire Facebook founder Mark Zuckerberg wears the same grey t-shirt every day. He only wants to focus on the things that matter.
This is the whole point of Jaaims’ AI trading solution: we help you take the emotion out of the investment process so that you have more time to focus on the things that are important.
To do this, our fully automated trading system examines over 10 million pieces of data daily to derive buy and sell recommendations across 1,000 global stocks. Plus, we even do the buying and selling, automatically opening and closing trades on your behalf.