In the tempest of markets, we are all vulnerable to anchoring our investment approach to fallible fixed points of reference. This can create the illusion of safety or an inflated perception of our own abilities. It is important to remain humble and reflect where our investment anchoring fallacies might lie.

There are two ways to be fooled. One is to believe what isn’t true: the other is to refuse to believe what is.

When it comes to picking winners in the stock market, individuals (men in particular) continue to prove themselves the fool. Strangely, market participants seem to be more overconfident the less clear an outcome is likely to be.