Information overload is limiting investment returns

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Investing, especially in equity markets, requires a long-term mindset, with very little attention being given to the noise surrounding you in the short term. Moneyweb Investing FrancoisStofberg

Since the arrival of the internet, talks about the ‘information age’ and its many benefits have taken place continuously – benefits such as cheap or even free access to large volumes of information. But the discussion rarely progresses to the potential negative impacts that might arise from too much information. We believe the benefits of access to information are real, clear, and well-documented. However, as with anything in life, too much of a good thing is generally bad.

No wonder the average investor feels overwhelmed by the investment question and second-guesses their decisions at every corner! Read: How to avoid permanent capital destruction Investment managers are also being forced to adapt to the ‘information age’, not only in terms of the changing investment landscape but also from a client management perspective.

 

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