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2]How We Got HereWe’re Only HumanThe field of behavioural finance examines the psychological and behavioural variables that cancome in to play with investing. As humans, our decisions can be influenced by emotions, biases andassumptions, especially when it comes to money. Recognizing you may be subject to these factorsmay help you make better investment decisions.Availability BiasOur thinking is greatly influenced by what is personally mostrelevant, recent or dramatic. And little has been more dramaticthan the unprecedented events of the 2008 financial crisisthat continues to be at the forefront of investors’ minds.LINGERING PESSIMISM GUIDES PEOPLE’S MONEYEvidence that post-crisis pessimism is starting to fade is only nowbecoming apparent as shown below by the significant positiveinflows from equity funds so far in 2013.U.S. Equity Fund Net Flows 32008 2009 2010 2011 2012-$2 Billion-$23 Billion$161 Billion2013“The investor’s chiefproblem—and evenhis worst enemy—islikely to be himself.”—Benjamin Graham-$128 Billion-$153 Billion-$229 Billion3. Source: Investment Company Institute. As of 12/31/2013.franklintempleton.ca Time to Take Stock 3