Take the Quiz: What’s Influencing Your Investment Decisions?
When markets are calm and your portfolio is growing, it’s easy to feel confident about investing.
The real challenge comes when markets become volatile. Headlines become alarming, social media fills with opinions, and suddenly it feels like everyone has an answer about what you should do with your money.
The truth is, our brains aren’t wired to make perfect financial decisions—especially when emotions are involved.
We All Have Investment Biases
An investment bias is simply a tendency to think or make decisions in a certain way without realizing it.
These biases can be shaped by your past investment experiences, what your family believed about money, the financial content you consume, the people around you, and major market events you’ve lived through.
For example, someone who experienced the 2008 financial crisis may naturally view risk differently than someone who began investing during a strong market.
We also tend to notice information that supports what we already believe. This is called confirmation bias. If you believe markets are about to fall, negative headlines may stand out. If you’re optimistic, you may naturally focus on positive news.
Without realizing it, we all filter information through our own experiences and beliefs.
Why This Matters
Some of the biggest investing mistakes happen wheninvestors:
- Sell after markets have already fallen
- Wait for “certainty” before investing
- Chase whatever has performed best recently
- Change long-term plans because of short-term headlines
These decisions can feel comfortable in the moment but may work against long-term goals.
That’s one of the reasons we build your financial plan the way we do.
Your strategy isn’t designed assuming markets will always go up. It considers market declines, recessions, unexpected events and periods of uncertainty.
Your time horizon, diversification, investment mix, emergency savings, cash-flow planning and appropriate level of risk all work together to help you stay focused when markets become uncomfortable.
And one of the most important roles we play as your advisor is helping you separate short-term emotion from long-term strategy.
Take the Quiz: What’s Your Investor Bias?
Choose the answer that feels most like you. There are no right or wrong answers—the goal is simply to better understand how you naturally react to investment decisions.
1. Your portfolio falls 15% over a few months. What’s your first reaction?
A. I want to move to cash before things get worse.
B. I feel nervous but remind myself markets recover.
C. I wonder if this could be a buying opportunity.
D. I immediately start reading articles to figure out what’s happening.
2. When reading investment news, you usually...
A. Read articles that support what you already believe.
B. Read a mix of different opinions.
C. Avoid financial news altogether.
D. Follow whatever everyone seems to be talking about.
3. A fund you own reaches a record high before pulling back. You find yourself thinking...
A. “I’ll wait until it gets back to that number.”
B. “Markets move up and down—that’s normal.”
C. “I wish I’d sold at the top.”
D. “Maybe it’s time to change everything.”
4. A friend tells you they made great money investing in something you’ve never owned. You...
A. Feel like you’re missing out.
B. Ask lots of questions before considering it.
C. Stick with your existing plan.
D. Start researching it immediately.
5. When markets have been rising for several months, you tend to believe...
A. They’ll probably keep rising.
B. Nothing lasts forever.
C. It’s impossible to know.
D. I should probably invest more now.
6. Which statement sounds most like you?
A. I worry more about losing money than missing gains.
B. I don’t like making changes once I’ve made a decision.
C. I often compare today’s portfolio value to its previous high.
D. I feel more comfortable when everyone seems to agree.
Your Results
Mostly A’s — Loss Aversion
You value security and protecting what you’ve built. That can be a strength, but it may also make temporary market declines feel more concerning than they need to.
Mostly B’s — Disciplined Investor
You tend to focus on your longer-term goals and are less likely to react immediately to short-term market movements.
Mostly C’s — Anchoring / Long-Term Thinker
You generally maintain perspective but may occasionally become attached to previous portfolio values, prices or decisions.
Mostly D’s — Confirmation & Herding Bias
You like staying informed, but it’s important to make sure you’re considering different viewpoints—not just what everyone else is saying or what reinforces what you already believe.
Remember...
The goal isn’t to eliminate bias. Every investor—including professionals—has biases. The goal is to recognize them before they influence an important financial decision.
Markets will change. Headlines will change. Predictions will change.
Your long-term goals are much more consistent.
That’s why we build your financial plan before emotions are running high and revisit it along the way. When markets become uncertain, our role is to provide perspective, help you focus on the bigger picture and make sure your decisions continue to support your long-term goals.
If you’d like to discuss your quiz results, please reach out.
This information has been prepared by Jessica Perry who is a Senior Wealth Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this email comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and a business name under which iA Private Wealth Inc. operates.
