Page 26 - Taking Stock 22 Summer 2019

Summer 2019 Taking Stock The IMPACTOF SHORT-TERMISM ON MARKETS Humans are hard-wired to focus on the short term. We all have a tendency to react to immediate risks as a result of the ‘ ght or ight’ syndrome inherited by our ancestors thousands of years ago. Our human biases have been exacerbated in more recent times by the need to react more quickly to the data that is provided almost continuously by the barrage of daily ‘news’, the exponential increase in data capture, and the market and commercial imperatives that demand short-term results and explanations. By Simon Steele Head of Global Equities London, United Kingdom 26