Behavioural Finance

Welcome back to the Rational Reminder Podcast everybody. Today we are using the opportunity to have a bit of a philosophical discussion about a bunch of things related to your retirement and the financial planning that goes into it.

Let’s say you make a choice that had you chosen differently, things would ostensibly have turned out more favourably. Later on, a similar situation comes up and you make the choice you think you should have made previously in the hope that the result you wanted before will come true this time around.

By this point in January, it’s a safe bet that many New Year’s resolutions have already been broken. Change is never easy and using the dawn of a new year, or a new decade, as motivation doesn’t seem to help much. Temptation derails us in so many subtle ways!

On today’s episode, we have Dr. Daniel Crosby joining us for an insightful discussion about the psychology behind investing behaviour. Dr. Crosby is a behavioural finance expert and asset manager who applies his study of market psychology to help people better understand the financial decisions they make and to shed some new light on our ability to be rational.

Michael Burry says we should get out of indexing. Jim Cramer says it’s time to jump in. These are interesting times in the world of investing! On today’s episode, we discuss Burry’s recent claims about passive investing and advise on a plan of action should he turn out to be right.

In investing and in life, we know we can’t always control the outcomes that occur from the decisions we make. Bad things can happen to the wisest among us. Likewise, even a fool can get lucky.

Sorry to ruin the suspense, but here’s my answer to whether I think market-timing ever works: No. I’ve looked at an overwhelming amount of evidence, and I have yet to find a rational reason for trying to dodge in and out of the market.

This is episode 39 of the Rational Reminder podcast with Benjamin Felix and Cameron Passmore with very special guest Rob Carrick.

This is episode 38 of the Rational Reminder Podcast with Ben Felix and Cameron Passmore.

All good things. But those same biases can cause serious damage to you as an investor. So today, let’s look at a hit list of the six most unwanted financial behavioural biases that stand between you and your most rational investing. Hopefully, by being aware of them, you can overcome them.