The Free Retiree Show

S1 EP105: How to Manage Behavior & Make Better Investment Decisions with Dr. Ryan Peckham

February 23, 2022

MONEY MANAGEMENT EDITION

 

Following the Covid-19 pandemic, global markets took a significant hit. Seeing the daily decline in investments, many investors sold their investments, hoping to avoid any more losses. However, the markets recovered just as quickly. Therefore, their losses became permanent.

 

Investors have behaved in a similar manner before. And this definitely will not be the last time. What causes us to behave this way in such situations? Our biases are to blame. 

 

Traditionally, most conventional economic theories assumed people are rational and would consider all available information when making a decision, thereby overlooking a crucial element of human behavior.

 

In the last 30 years, a lot of work has been done on this subject suggesting that we are all emotionally driven and biased in our thinking. Occasionally, these biases interfere with our ability to make effective financial decisions.

 

How do you avoid these biases and avoid putting your hard-earned money at risk?

 

Join us as Dr. Ryan Peckham from the University of Texas discuss behavioral psychology, including the top biases that affect investors’ financial decisions. How does the behavior of investors benefit or hinder their investment decisions? With hosts, wealth manager Lee Michael Murphy, career advisor Sergio Patterson, and attorney Matthew McElroy tune in to this week’s episode of The Free Retiree Show.

 

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