Nigel Thomas: Investors are suffering from cognitive dissonance

Laura Dew

Nigel Thomas, manager of the £4.6bn AXA Framlington UK Select Opportunities fund, believes bond and equity investors are experiencing high levels of confusion caused by recent market dislocations.

He said investors appear to be suffering from what in psychological circles is categorised as ‘cognitive dissonance'. This is discomfort experienced by an individual who holds two or more contradictory beliefs or ideas and is confronted by new information that conflicts with these concepts. Thomas said the combination of negative yields in bond markets, zero interest rates and equity highs fueled by quantitative easing have created this high level of confusion for investors. "This (dissonance) can be witnessed in bond markets as negative yields occur across the globe. We know this is ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week