One of the key ingredients in investments is decision-making. Decisions taken, in investment terms, will impact directly the accumulated wealth and wellbeing of individuals. Although technology has brought the investment world closer to us with access to stock markets and investment strategies at the click of a button, it still remains a challenging environment. Markets may be complex, volatile and unpredictable more so in today’s scenario.
Anyone can form an opinion and anyone can take a decision, however, when it comes to investment decision-making, financial institutions have access to specialists who are wired, aligned and focused on this subject matter. This is one of the significant benefits of investing through financial institutions and investment firms.
Through the collective efforts of focused research and strategy teams, financial institutions have access to a wealth of information. Teams are made up of individuals with academic qualifications, from different backgrounds, experiences and knowledge. The pooling of different perspectives brings together a myriad of possibilities and scenarios. The more the number of scenarios considered, the more likely that the investment decision will be based on solid grounds.
Financial institutions bring together the integration of human brains and systems
Ultimately, the goal is one – identifying the best possible solutions and market opportunities with the aim of maximising returns and earnings for the portfolios of investors. It is safe to say that groups bring together three important dynamics – diversity, perspective and an effective means of combining the first two. Ultimately unity is power – no one individual can compare.
Through technology we may have more access to markets and up-to-date information through relevant apps but the decision-making will ultimately be the one we make on our own and for ourselves. Few things can replace the effectiveness of institutional strength and accessibility together with the necessary tools and systems and professional investment advisors.
Financial institutions bring together the integration of human brains and systems. This is not an argument of which of the two is better. It is simply a deduction that putting the two together will reap results that the two separates cannot achieve. The positive outcomes emanate from the synergy of a group of human brains and machines put together.
The ultimate decision of whether to do it alone or to opt for professional advice when investing should not be difficult. Intuition may be part of the process – however, one instinct versus a collective set of instincts is incomparable. At the end of the day, collective judgement might be stronger than that of any one individual.
This article is not, and nothing in it should be construed as an offer, invitation or recommendation in respect of investment products or services offered by the BOV Group. The value of investments may go down as well as up and may be affected by changes in currency exchange rates. Past performance is not a guide to future performance.
Stephanie Agius, Bank of Valletta Wealth Management