Why are drivers like investors? They overreact to bad news
If you want to swerve in and nab investment opportunities, watch how car drivers behave
Traffic on Dublin’s M50. Photograph: Alan Betson/The Irish Times
What has driving got to to do with investing? More than you might think, suggests Lawrence Hamtil of Fortune Financial Advisors. Commuting to work, Hamtil heard on the radio of a big accident on the motorway. So did everyone else; consequently, the side streets were choked with traffic.
“Once I reached the interstate, it was 40 per cent of usual traffic, so commute was a breeze,” tweeted Hamtil. And the moral? “Similar to investing, people overreact to bad news, and miss opportunities.”