The ostrich is used to describe investors who dislike receiving information about potential interim losses. Similar to nesting ostriches that (allegedly) bury their heads in the sand when they sense danger, these investors often ignore negative financial news and fail to react to critical situations in the market likely to impact their investments — hoping for better days ahead.
This behaviour may stop an investor from making rash decisions in the heat of the moment, but it could also lead to further losses in the market. Rather than being an ostrich, it is probably wiser to settle on a course of action such as letting go of a losing position that has been on a downward trend for a prolonged period of time.
It’s time to get your head out of the sand. At Eastspring Investments, we accept that it is extremely hard to be more “informed” than the market. Tap into Eastspring Investments’ expertise to improve your investing journey. Read our insights at www.eastspring.com/insights