Nigel Thomas: Investors are suffering from cognitive dissonance

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 ...