As investors we are trained to be conservative (“there are no free lunches”), to expect less in future (“markets mean revert”) and to avoid the hype of the moment (“this time it’s different”). This conservative mindset underpins an industry which has the responsibility of managing other people’s money. Could it be though, that this conservative mindset is a net cost to the same investors we are aiming to serve? Are we overly conservative in our assessment of investment opportunities, and do we overestimate the risks because of our own biases? …to view the full article, please click here.