Impact of Cognitive Errors on Investment Decisions

Imagine you are a financial advisor working with high-net-worth individuals and families. You are preparing a presentation to educate your clients about common cognitive errors that can impact their investment decisions. In particular, you want to focus on biases such as overconfidence, loss aversion, and confirmation bias.

Discuss how these cognitive errors can lead to suboptimal investment choices and provide specific examples of each bias in practice. Additionally, suggest strategies that you could recommend to help clients mitigate these biases and improve their decision-making process.