welcome to: behavioral economics - moody's analytics€¦ · welcome to: behavioral economics...
TRANSCRIPT
Welcome to:Behavioral Economics
Investing in the age of Covid-19
Our Moderators today:
Barry LaValleyRight-Brain Adviser
Dr. Gillian LeithmanRewire to Retire
Some caveats before we start…
• Not an investment or investment advice seminar
• We are not going to teach a behavioral finance course!
• Our focus is on your client and you
• Our goal is to help you understand the mind of your client
• Note: all images licensed through Shutterstock
We feel your pain…
How do our brains work?
Understanding our brains
• Rational decision-making
• Crisis decision-making
• Stress hormones
• Think fast…think slow
Pay attention to these behavioral biases
Biases to remember…
Ambiguity
Confirmation
Regret
Illusion of control
Attribution
Representativeness
How can we mitigate client biases?
Helping our clients…
Emotional vs cognitiveNudgingAnticipatingReframingFocusing on non-financial goals
From adviser to coach…
Key concepts…
The changing role of the adviserWhy people need coaching todayWhat do coaches do?From a brain science perspective, what is the value of being a coach?
The way forward…