Why the ups and downs of the share market is linked to collective human behaviour

The share market is not some crazy casino. It’s also not a logical continuum of cause and effect that can be relied upon with mathematical certainty.It should be an emotionless exchange where companies can raise capital, and people can buy and sell existing businesses.But rather the craziness we sometimes see is what we humans inject into the share market — with our fear and our blind ambition — that often drives volatility. It is humans, collectively thinking and behaving in patterns, which often triggers mass-group, counter-behaviour, that often drives the ups, downs and sideways we see in share prices.These were some of the points outlined in the entertaining, financial insight delivered by Peter Thornhill, author of the bestseller Motivated Money. Peter is famous in the FIRE community (Financial Independence, Retire Early) for his teachings on dividend investing and why he feel it’s the best strategy for Australians to retire.Over the last three nights, Peter addressed 430 R J Sanderson guests in an educational roadshow; traveling from Essendon, Narre Warren and ending in Wangaratta, Victoria. The event series called Beyond the Noise; was a no-nonsense assault on popular investment wisdom. Peter shared his personal strategies designed to generate income and support his family’s lifestyles in retirement.“There’s no such thing as a market crash”. . “Having a future-based lens is critical to success and looking backwards may damage your wealth,” said Peter.The room also heard from Chris Adams, a 16 year veteran and expert in equities research who has an outstanding track record leading Australian and European equities funds.RJS Wealth Management, regularly shares their financial intelligence through their educational programs, designed to empower clients to make well-informed financial decisions, every step of the way.Media enquiries:Annette LovellExecutive Assistantannette.lovell@rjswm.com.au(07) 3219 2555