Podcasts about hersh shefrin

A Joint Podcast with Global Trading and sister publication, DerivSourceWe begin the new year by reflecting on conversations of 2022's past that set us up for continued success in 2023 and beyond. In this episode, Terry Flanagan, Managing Editor of Markets Media, and host for the GlobalTrading podcast, and Julia Schieffer, editor of DerivSource and host for DerivSource's podcast reflect on the top 3 notable conversations of 2022. 2022 came with rapid change and regulation and we felt most inspired by the conversations discussing what lies ahead of 2023 for post-trade technology changes and those who shared their views on navigating the rapidly changing collateral management space. Some of the most influential discussions came from discussing the challenges and opportunities that come with continued market volatility with Derivative Path's head of business development, Tom Loffreido, and head of balance sheet strategy, Isaac Wheeler. As well as, chatting with Gemma Hagen, Director of Technology at Aspect Capital, excavating the challenges and opportunities associated with the buy side modernizing its technology, and taking a fascinating deep dive into the connections between behavioral psychology and risk management with Hersh Shefrin, author, pioneer, and Mario L. Belotti Professor of Finance at Santa Clara University. Please go to the Global Trading website or Global Trading podcast to listen to the full episodes or your favorite podcasting channel. And don't forget to subscribe!

A Joint Podcast with DerivSource.com and sister publication, Global TradingWe begin the new year by reflecting on conversations of 2022's past that set us up for continued success in 2023 and beyond. In this episode, Julia Schieffer, editor of DerivSource and host for DerivSource's podcast, and Terry Flanagan, Managing Editor of Markets Media, and host for the GlobalTrading podcast reflect on the top 3 notable conversations of 2022. Some of the most influential discussions came from discussing the challenges and opportunities that come with continued market volatility with Derivative Path's head of business development, Tom Loffreido, and head of balance sheet strategy, Isaac Wheeler. As well as, chatting with Gemma Hagen, Director of Technology at Aspect Capital, excavating the challenges and opportunities associated with the buy side modernizing its technology, and taking a fascinating deep dive into the connections between behavioral psychology and risk management with Hersh Shefrin, author, pioneer, and Mario L. Belotti Professor of Finance at Santa Clara University. After a year of rapid change and regulation, we felt inspired by the conversations discussing what lies ahead of 2023 for post-trade technology changes and those who shared their views on navigating the rapidly changing collateral management space.Please go to the DerivSource or Global Trading podcasts to listen to the full episodes or your favorite podcasting channel. And don't forget to subscribe!Follow DerivSource on LinkedIn and Twitter . See DerivSource and our Terms of Use for DerivSource.com here

What is your risk personality style? Dr. Shefrin describes how our disposition to risk can show up in the way we work and the work behavior of others. 

Hersh Shefrin, author, Mario L. Belotti Professor of Finance at Santa Clara University, and a pioneer in the behavioural approach to economics and finance, speaks to DerivSource editor, Julia Schieffer, about the interconnectedness of behavioural psychology and risk management. Tune into this episode of "Living the Trade Lifecycle" to hear about the tools and techniques that can be applied at an organisational level to address common psychological pitfalls, such as confirmation bias and excessive optimism, as well as the risks and limitations with technology, such as AI.

We have reached the end of another year, our third while doing this podcast. We are spending this episode on our customary year-end review, and we will be pulling segments from some of the great interviews we hosted over the course of 2021. In doing so, we hope to create a bit of summary of the year and the biggest lessons we all learned together. The podcast has continued to grow beyond our wildest expectations and we are so grateful to be on this journey with our ever-increasing community and audience. We touch on many themes in this recap, moving from general ideas about life, goals, happiness, abundance, and purpose, to more financial subjects of money values, retirement, and crypto, and then into the deeper technical aspects of investment such as value premiums, factors, bonds, and much more. We have tried our best to focus on the segments that we found most enlightening and that changed our perspective, and have highlighted them with reflections and commentary. So to hear it all, join us today, and we'll see you next year, for more of the Rational Reminder Podcast.   Key Points From This Episode:   Looking at some of the amazing numbers around the growth of our community. [0:02:37.2] A few shoutouts to the wonderful people who make this podcast possible. [0:04:27.8] Bill Schultheis on how to find and fund a good life. [0:08:34.5] Hal Hershfield's thoughts on making better decisions with your future wellbeing in mind. [0:10:44.3] Ashley Whillans on the relationship between time-poverty and wellbeing, and increased leisure time. [0:13:39.7] Jennifer Risher weighs in on the importance of performing meaningful work. [0:17:24.5] Robin Taub's family money value's from her book, The Wisest Investment: [0:20:04.1] Jennifer Risher's approach to managing money values at home. [0:22:27.7] Katy Milkman applies the central idea from How to Change to saving money. [0:23:22.7] Johanna Peetz on how to use the idea of a future self to reach a goal. [0:26:38.6] Paul Merriman shares his experiences of the relationship between money and a good life. [0:28:27.7] Adriana Robertson's legal perspective on the rise of index funds. [0:33:48.4] Jay Ritter on the question of market efficiency. [0:36:41.8] Hersh Shefrin's emphatic and nuanced advice about how to act in relation to the market. [0:38:20.3] John Cochrane on the shifting relative value of stocks. [0:39:43.3] Rob Arnott shares his thoughts on the drawbacks of cap-weighted indexing. [0:42:31.5] Antonio Picca on the drawbacks of a factor-based investment strategy. [0:47:01.6] John Cochrane on making decisions around owning value stocks. [0:48:10.7] Campbell Harvey talks about conditions for concentrated portfolios. [0:52:20.2] Bill Schultheis on tilting for factors versus sticking with market cap indices. [0:54:02.6] Adriana Robertson shares what the research tells us about the basis for investment decisions. [0:54:46.1] Hersh Shefrin on what really matters with regards to portfolio construction. [0:57:33.0] Antonio Picca on more active approaches and capturing premiums through rebalancing. [0:41:26.0] Brad Cornell explains the differences between a factor and a characteristic. [1:01:52.2] Rob Arnott, David Booth, and Antonio Picca weigh in on the question of value stocks at present. [1:04:22.6] Robert Novy-Marx's approach to cheap stocks and high profitability. [1:11:54.1] Dave Plecha on owning bonds today, in light of historically low interest rates. [1:15:12.0] Anna Lembke on how our daily and long-term decisions are influenced by dopamine. [1:18:20.0] Cullen Roche shares his thoughts on the future of market inflation. [1:22:57.2] Don Ezra's lessons for retirement and better preparation. [1:24:57.6] Anna Lembke on the results of increases in leisure time. [1:27:37.1] David Blanchett's thoughts on the evolving role of the financial advisor. [1:30:50.0] Don Ezra 'seven asset classes of life's abundance portfolio'. [1:33:42.9]

Episode 78 : Hersh Shefrin, author of Beyond Greed and Fear joins the podcast to discuss key takeaways from his book. Dr. Shefrin takes us through his journey deep into the world of behavioral psychology and what lead him to relate behavioral psychology to financial markets. Dr. Shefrin helps us better understand some specific, technical questions about investing and also weighs in with some broader, more philosophical responses to David's questions. BookAuthor: Dr. Hersh ShefrinTitle: Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of InvestingSocial MediaHersh ShefrinForbes: Hersh ShefrinTwitter: hershshefrin

In many episodes of this podcast we refer to the psychological component of investing, and today we are very happy to host a global authority on the subject and share an absolute masterclass about behavioural psychology as it relates to our finances and the decisions we make. We welcome Professor Hersh Shefrin to the show, who is the author of many books including the seminal Beyond Greed and Fear, which he wrote in the last 1990s, and still holds much value and relevance in today's climate. Professor Shefrin is kind enough to share some reflections on how his understanding of the themes discussed in the book has evolved since those days and unpacks some great pieces from the book for listeners to digest. We get into some specific and technical questions about investing, looking at pursuing the alpha, momentum, and index funds, before our guest also weighs in with some broader, more philosophical responses to our queries. The conversation covers the psychological needs of investors, expected returns, and of course biases. Listeners can expect to come away with a clearer and more detailed picture of ideas we often reference, so make sure to join us for this incredible exploration with Hersh.   Key Points From This Episode:   The key message about market psychology from Beyond Greed and Fear. [0:03:23.1] Beyond Greed and Fear's three themes: heuristic-driven bias, framing effects, and inefficient markets. [0:04:39.3] Reflecting on these themes in a modern context and how our understanding has been refined. [0:12:53.6] Considering index funds in light of market efficiency frameworks. [0:21:08.3] Assessing one's ability to pursue the alpha and Professor Shefrin's advice to this end. [0:27:14.1] Possible reasons for large numbers of active money managers at institutions. [0:30:20.6] Understanding risk-based asset pricing models and expectations of higher returns when investing in riskier stocks. [0:34:41.8] The impact of behaviour-based versus risk-based explanations for investors. [0:40:00.2] Utilizing momentum in a portfolio: Professor Shefrin's explanation of this interesting phenomenon. [0:41:58.6] Comparing the current trading landscape with the advent of online trading in the '90s. [0:46:25.5] The addictive potential of stock trading; what we know about the neuroscience. [0:49:02.3] Unpacking the idea of growth opportunities bias and implicit assumptions about averages. [0:52:14.4] Weighing the relevance of the mean-variance framework to individual investors. [0:57:48.2] 'Carrying a psychological call option'; why Professor Shefrin's depicts advisors in this way. [0:59:09.3] Professor Shefrin's perspective on the interchangeability of dividends and capital gains. [1:04:42.9] The big influence that Professor Shefrin's uncle had on his career! [1:08:53.1] How Professor Shefrin defines success in his personal life and career. [1:12:12.7]

In this week's episode, Cameron and Benjamin share what's on their mind and delve into listener questions on subjects ranging from the CAPE ratio to how to go about changing someone's mind. Tuning in you'll get a preview of some of the formidable guests featured on future episodes, like John Cochrane and Hersh Shefrin. We also cover book recommendations and unpack the concept of libertarian paternalism from the highly influential best-seller, Nudge: The Final Edition by Richard Thaler and Cass Sunstein, and how it can be a force for good. We cover various facets of passive investing and index funds including how, despite its proven effectiveness, many people continue to take a dim view of it. Learn why certain personality types may be more drawn to active investing and why. We also share tips for reasoning with skeptics, including some useful questions to ask when things get heated. Next, we take an in-depth look at index funds and global returns over the last century based on the research of Dimson, Marsh, and Staunton and their book Triumph of the Optimists. We also answer questions from our Talking Cents Cards and take a look at the best bad advice from the previous week. This episode is packed with fascinating anecdotes and excellent recommendations that you won't want to miss! Tune in today!   Key Points From This Episode: We reflect on some of the reviews and feedback we've received over the past week. [0:03:00.7] An overview of the guests that listeners can look forward to on future episodes. [0:06:15.8] Talking Cents Cards and how they can introduce your family to conversations about money. [0:07:01.2] Introducing Nudge: The Final Edition by Richard Thaler and Cass Sunstein, and the concept of libertarian paternalism. [0:08:50.0] Cameron shares his story of the week, an article from Magnify Money on how emotions can influence investor decisions. [0:13:53.3] An update on our response to a listener question on the CAPE ratio by discussing the work of John Cochrane on determining predictability. [0:17:24.2] We unpack a listener question on whether one should be looking to convert family members who fit into the average, active investor archetype. [0:21:47.6] What Benjamin has learned from Think Again by Adam Grant, about how to talk to people you disagree with. [0:24:15] How Benjamin experienced a revelation on index funds. [0:29:28.5] An examination of index funds and global returns over the last century based on the research of Dimson, Marsh, and Staunton and their book Triumph of the Optimists. [0:36:30.3] An in-depth look at how global events factor into Dimson, Marsh, and Staunton's data. [0:39:35.9] How dictatorships, civil troubles, wars, unsuccessful economic and monetary policies, and communism have prevented countries from transitioning from emerging to developed. [0:42:43] Cameron and Benjamin answer a Talking Cents card question by sharing the first big purchases that they saved up for. [0:50:47.6] Cameron and Benjamin answer a second card question: What is a creative way to save money in today's digital era? [0:52:53.8] Hear this week's bad advice from an Entrepreneur article titled: 7 Downsides to Passive Investing and Why it Can Be Bad for Your Portfolio. [0:54:09.2]

Welcome to Finance and Fury. In this episode, we are going to look at some of the potential fallouts from the GameStop saga – looking at market disruptions, market integrity and the ongoing implications of potential regulation changes If you want an overview of this – check out last Mondays episode. But in short - Gamers are good at playing games – when they know the rules The rules of the financial game are starting to be more understood by people online - Some people on reddit were paying attention to the Form 13F filings in the US for hedge funds – have to be lodged each quarter– saw that GME was heavily shorted by a few funds, The one firm that received the most attention, Melvin Capital had heavy short positions The price of GME has come back down a fair bit from its high point last week, was sitting at around $60 on Friday last week – but there was a gradual increase from around $18 at the start of Jan to around the last week of Jan – when the price started to sky rocket – went up over $400 – triggered a short squeeze where funds were trying to get out of their short positions by buying back the shares – but there either went enough shares, pushing prices up further or you had to accept a massive loss Even buying the shares back at $60 would still result in a big loss – most got into the short positions between $4 and $10 There are some estimates – hard to get a total for all the funds that lost money – but Losses total losses were estimated to be around $70bn from short positions within the hedge fund community – Melvin Capital lost around $13bn of their capital – loss of around 53% in the fund So in this episode – I want to go through the nature of this market disruption, and the greater implications of this – from the market integrity point of view as well as potential regulatory responses   To start with – discuss the nature of Market disruptions – through innovations One view that I have about this whole saga is that the disruptions are due to innovations – both human and technological It is a bit of a paradigm shift – humans are adaptive creatures – if a group of online investors managed to push up the price of a company, where some made some decent money, while causing massive losses to institutions, what is to stop this from happening again? When looking at the evolution of humans and technology, it can help to paint a picture of what may happen next in financial markets – the basic trend occurs as follows: Disruptive companies or trends start- normally start small or at the low end of a market – these start out with a focused/niche group Existing powers that be (companies or groups in the social dynamic) ignore this new competition – mainly because it is small – so either poses no threat to the loss of customers or there aren’t enough people to affect change Over time successful trends or disruptor climb the value chain – with companies, they offering better products and services, with social groups, it also provides value – community or prestige Eventually – these disruptors grow to a point of being legitimate competition - the existing powers that be either fail or adopt the disruptor’s models, and the whole cycle starts over again Much more to this cycle – but when viewing the recent rise in retail trading through this model – it is following a pretty classic disruption model The emerging disruptive trend in markets – coming from retail investors in combination with technology – have access to low/no cost trading platforms as well as chat sites/social media that binds them together – so they can move trades as one They have been overlooked by the powers that be – relatively small -but when taken at the aggregate level, especially now with stimulus checks coming in – they each have an additional $2k ($1,400 more coming on top of the initial $600) As a group – the common knowledge of gambling and gaming is relatively strong Therefore, it is pretty easy to assume that this style of behaviour will grow and have further influence on financial markets  The big lesson about disruption – is that once the ball gets going, it rarely stops – unless diverted – which is where ‘market integrity’ will come into this -   If this does continue – what are the risks of short squeeze a large credit shock can traverse through the market - how can last few weeks squeeze activity affects the rest of the (institutional) market? It all comes down to the leveraged nature of trades Aside from a broker/hedge fund not being able to meet margins calls or close out a position - most of the hedge fund industry is financed – in doing so, its beta is close to 1 from their net exposure x leverage In other works - if your (long-short) exposure is just 10% of gross values but you are levered 10x then your ultimate NAV beta is still about 1 Trouble is - even the largest brokers will only allocate so much 'regulatory capital' towards Prime Brokerage; after which they will raise the cost of financing Morgan Stanley and Goldman (the two largest shops in the space) are in a much, much better position than in 2008 - but when more stocks get squeezed, they will raise financing costs to allocate precious capital - they will cap risk to the hedge fund and new trades will become impossible to put on if gross positions exposure exceeds risk adjusted limit If this were to cascade – hedge funds need to cover their position – through selling up long positions to cover the short ones - the first thing sold is the highest P/E (likely highest beta / momentum factor risk) exposure Now – Melvin was a pretty small fund in the scheme of things – but if a fund 10x the size of Melvin was to find themselves in this position – things could become worse – losing 53% of their capital in one trade, then follows the redemptions from existing investors - If these were to cascade, then the Fed will have to step in, and call the prime brokers and relax regulatory standards Things are heating up - the most heavily-shorted stocks have risen by 98% in the past three months, outstripping major short squeezes in 2000 and 2009 US equity long/short fund returned -7% this week and has returned -6% YTD. Over the past few decades there have been a number of short squeezes in the US equity market – what is different this time is that it has been an extreme case in a few specific companies   In the last three months – when looking at a basket of top 50 shares with market caps above $1 billion and the largest short interest as a share of float in the Russell 3000 index – these companies have rallied by 98% - This week the basket’s trailing 5-, 10-, and 21-day returns registered as the largest on record. most shorted stocks took place even though aggregate short interest was near a record low – this is different as well because historically, "major short squeezes have typically taken place as aggregate short interest declined from elevated levels In contrast, the recent short squeeze has been driven by concentrated short positions in smaller companies, many of which had lagged dramatically and were perceived by most investors to be in secular decline" Bankers at Goldman sacs believe this could be an issue – one stated "this week demonstrated that unsustainable excess in one small part of the market has the potential to tip a row of dominoes and create broader turmoil." They went on to say "the retail trading boom can continue" as "an abundance of US household cash should continue to fuel the trading boom" with more than 50% of the $5 trillion in money market mutual funds owned by households and is $1 trillion greater than before the pandemic, what happens in the coming week - i.e., if the short squeeze persists - could have profound implications for the future of capital markets   This is where we come back to the concept of market integrity and systemic risks– which regulators are meant to be responsible for What is market integrity? Well, it is one of the main objectives of securities regulators – in the US, the SEC, in Australia, ASIC - a rough definition it to protect the integrity or fairness of the markets This, together with protecting investors, improving the efficiency of markets, and protecting the markets from systemic risk, form the four fundamental goals of securities regulation Such narrow definitions of market integrity conceptually link it to market efficiency - in that a market of high integrity should also be efficient because prices will reflect their fundamental value – there are a few definitions Michael Aitken has defined market integrity, in part, as “the extent to which market participants engage in prohibited trading behaviours.” Hersh Shefrin and Meir Statman (1) freedom from coercion (people enter transactions voluntarily and are not coerced into or prevented from entering transactions); (2) freedom from misrepresentation (people are entitled to rely on information which is disclosed); (3) information (people are entitled to equal access to a particular set of information); (5) freedom from impulse (people are protected from possible imperfect decisions); (6) efficient prices (people are entitled to prices that they perceive to be efficient in that intervention is permitted to correct imbalances); and (7) equal bargaining power (people have equal power in negotiations leading to transactions). Here is where things can get murky – who defines what fair/efficient prices should be? What is an efficient price? Sure, GME at over $400 isn’t an efficient price, but are Afterpay or Tesla trading at their efficient price? What about freedom from impulse? To implement this, this could be what Robinhood did, limit/restrict buys – not letting people buy companies based around what is determined impulse The next element is regulators protecting the market from Systemic risk is the possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy These definitions, or rules are contradictory – regulators have four major functions - protecting market integrity, protecting investors, improving the efficiency of markets, and protecting the markets from systemic risk Based around protecting investors, this could mean the limitation of investors rights – the banning of the trades in a company should be something that the SEC should look into – reduces the integrity and efficiency and competitiveness of a market – stacks everything on one side The issue with the regulations is that it is based on projections from one side – the financial systems – i.e. hedge funds and politicians – to help protect from this happening again, they may restrict the free market When looking at the options for Regulations – it may be as simple as tech censorship – discord banned WSB for a short time – may see the pressure of the Government on either trading firms or social media sites to reduce the coordination of traders One of the more likely outcomes will be that there will be some Scapegoats to scare the public from doing this again – already found one or two – similar to what happened in the US back in 2010 – what can get them is that some of these people on reddit trading have securities licences in the US they will once again find a small-time trader to scapegoat, regardless of whether their actions actually had a major impact on the market volatility in question Still an ongoing issue – but time will tell how this plays out – it may turn out that nothing may come from this – at the very least, the US/SEC/Regulators and committee members like Maxine Walters may just get a few scape goats from this movement fined/banned from trading or jailed – But if the trend continues of retail traders buying shares and shorting – further action may be deemed necessary by governments/regulators – to protect market integrity as they see it Whatever the governmental response is – it will take a while to legislate – maybe a few years – but if a market crash occurs out of this – the blame will be placed on redditors – not the short sellers or the people betting against a share with other peoples money – just those going long with their own money Thank you for listening to today's episode. If you want to get in contact you can do so here: http://financeandfury.com.au/contact/

Hersh Shefrin is a pioneer of the field behavioral finance, which, as the name suggests, integrates principles of human behavior like emotion and self-control into financial and economic models. Dr. Shefrin serves as the Mario Belotti Chair in the Department of Finance at Santa Clara University's Leavey School of Business, and he has worked at Santa Clara for 40 years. Dr. Shefrin has written several books including “Behavioral Risk Management” in 2015 about how financial disasters and mistakes almost always have behavioral roots. He has written textbooks and dozens of articles, he contributes to Forbes, and he has his own Wikipedia page. In this conversation, Dr. Shefrin tells the story of how he got interested in behavioral economics, and this story involves the most famous psychologists of the 20th century. We also zoom in on personal decision-making tactics, how to think about self-control, and tips for young people on investing in volatile times. Website: https://www.voicesofsantaclara.com/hersh-shefrin See acast.com/privacy for privacy and opt-out information.

Scott and Pat open the show with a recap about how Hanson McClain’s Money Matters came to be. That is followed by a trio of callers, including a person who is worried about leaving too much money to her children. Our second caller is a devoted, career teacher still carrying a heavy student loan debt load. Next, a caller from the Midwest has accrued $1.6 million, has a pension and a dairy farm, but needs some specific financial advice. Lastly, special guest Hersh Shefrin, PhD., joins the program to discuss the 2008 financial collapse and behavioral finance.

Jason interviews Dr. Hersh Shefrin. Hersh Shefrin is the Mario L. Belotti Professor of Finance at Santa Clara University. He is one of the pioneers in the behavioral approach to economics and finance. The January 2001 issue of CFO magazine lists him among the academic stars of finance. A 2003 article in the American Economic Review listed him as one of the top fifteen economic theorists to have influenced empirical work. In 2009, his behavioral finance book Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing was recognized by J.P. Morgan Chase as one of the top ten books published since 2000. His books span the entire financial landscape, describing how behavioral ideas impact investment (Beyond Greed and Fear), corporate finance (Behavioral Corporate Finance), asset pricing (A Behavioral Approach to Asset Pricing), and risk management (Behavioral Risk Management). He received a B. Sc. (Hons.) from the University of Manitoba in 1970, an M. Math from the University of Waterloo in 1971, and a Ph.D. from the London School of Economics in 1974. He also holds an honorary doctorate from the University of Oulu, Finland. He is frequently interviewed by the press and in February 2014 his work was profiled on BBC-TV.

Ask a number of influential social scientists who in turn influenced them, and you’d likely get a blue-ribbon primer on the classics in social science. Wright Mills’ The Sociological Imagination. Ernest Becker’s The Denial of Death. Irving Goffman’s The Presentation of Self in Everyday Life. Emile Durkheim’s Suicide. Michel Foucault’s The Archaeology of Knowledge. During the recording of every Social Science Bites podcast, the guest has been asked the following: Which piece of social science research has most inspired or most influenced you? And now, in honor of the 50th Bites podcast to air, journalist and interviewer David Edmonds has compiled those responses into three collections. This last of the three appears here, with answers presented alphabetically from Toby Miller to Linda Woodhead. “I remember as a graduate student reading classics in epidemiology and sociology and feeling like a kid in the candy store,” recalls David Stuckler, now a University of Oxford sociologist, before namedropping? Durkheim. Several of the guests gently railed at the request to name just one influence. “There isn’t one,” starts Mirca Madianou, a communications expert at Goldsmiths, University of London. “There may have been different books at different times of my formation.” Social psychologist Steve Reicher said he instead liked the idea of desert Island books, which give multiple bites of this particular apple, and then named several influences, including E.P. Thompson’s The Moral Economy of the English Crowd in the Eighteenth Century and Natalie Davis’s The Rites of Violence: Religious Riot in Sixteenth-Century France, which he describes as “beautiful and rich depictions of patterns of social behavior.” “I’m unprepared to answer this!” exclaims behavioral economist and Nobel laureate Robert Shiller before he cites Hersh Shefrin and Richard Thaler’s work that pioneered the connection between neuroscience and eEconomics. Sometimes, though, the answer comes instantly. “Not a day that I don’t think about him or talk about him to somebody,” said Lawrence Sherman of Austin Bradford Hill, an economist whose work evaluating the use of streptomycin in treating tuberculosis created the template for randomized controlled trials.

Join Carlos Vazquez as he explores behavioral finance. Even the best Wall Street investors make mistakes. No matter how savvy or experienced, all financial practitioners eventually let bias, overconfidence, and emotion cloud their judgment and misguide their actions. Yet most financial decision-making models fail to factor in these fundamentals of human nature. In Beyond Greed and Fear, the most authoritative guide to what really influences the decision-making process, Hersh Shefrin uses the latest psychological research to help us understand the human behavior that guides stock selection, financial services, and corporate financial strategy. Shefrin argues that financial practitioners must acknowledge and understand behavioral finance--the application of psychology to financial behavior--in order to avoid many of the investment pitfalls caused by human error. Through colorful, often humorous real-world examples, Shefrin points out the common but costly mistakes that money managers, security analysts, financial planners, investment bankers, and corporate leaders make, so that readers gain valuable insights into their own financial decisions and those of their employees, asset managers, and advisors. According to Shefrin, the financial community ignores the psychology of investing at its own peril. Beyond Greed and Fear illuminates behavioral finance for today's investor. It will help practitioners to recognize--and avoid--bias and errors in their decisions, and to modify and improve their overall investment strategies.Hersh Shefrin holds the Mario L. Belotti Chair in Finance at the Leavey School of Business, Santa Clara University.

Born To Save... Pressured To Spend To be American is to spend money—right? Unfortunately, for the most part, that statement is correct. In today's financial environment, many savers are finding the pressures to conform their saver's mentality to that of a spender's hard to withstand.     So what's a saver concerned with financial security trapped within a consumer culture to do?     In this week's installment of the David Lukas Show, David and Zach explain steps that can be taken and the planning that should be done to ensure a WorryFree Retirement™.     First on the discussion table is Hersh Shefrin's, PHD, study “Born To Spend”, and how both nature and nurture impact an individual's spending and borrowing habits. David and Zach explain, in detail, why a person's mentality towards money matters and how the traditional approach to financial literacy and understanding isn't working for most Americans. One major reason being that most of us don't know what our financial personality is. Knowing how you think about money is a key component to gaining the skills and understanding the processes that are involved in making informed investment decisions.     Find out what your financial personality is today!     Of course, financial security takes more than just a basic knowledge of all the options that savers, investors, and speculators alike have for safeguarding their hard earned retirement funds. It takes a firm vested in your future, a firm like David Lukas Financial, to set said safeguards in place.     David Lukas Financial specializes in the uncommon strategies that can protect your hard earned money and retirement funds from the inevitable pitfalls of Wall Street. If you're interested in Sleep Insurance™ and worrying less about money™, call 1-800-559-0933 now.     Secure your future by meeting with David today!

My guests today are Hersh Shefrin and Arvid Hoffmann.  Hersh Shefrin has done pioneering work in behavioral finance and is the author of Beyond Greed and Fear. Hoffmann is a colleague of Shefrin. He is a Professor of Finance at Maastricht University in the Netherlands. The topic is their paper, Technical Analysis and Individual Investors. In this episode of Trend Following Radio we discuss: Covel and Shefrin discuss how Shefrin came to know that behavioral finance was his path; the two-system framework; the connection to behavioral and eating disorders; the disposition effect; when emotion and reason are in conflict; “transferring your assets” vs. “selling a loss”; distinguishing between rules and discretion; how we stick with rules for ourselves given the context of our humanity; the psychological pitfalls of the 2008 financial crisis; the inevitability of market crises; Minsky and Keynes; the psychology of Keynesian economics; and human ideas surrounding uncertainty. With Arvid Hoffmann, Covel discusses the paper Technical Analysis and Individual Investors; the inspiration for the paper; Hoffmann's definition of technical analysis; the narrow focus of the paper to short-term trading; technical analysis and trend following; “invest as if the market was efficient”, and “restrict your attempts to beat the market” Jump in! --- I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show. To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

Michael Covel speaks with Hersh Shefrin and Arvid Hoffmann on today’s two-part podcast. Hersh Shefrin has done pioneering work in behavioral finance and is the author of Beyond Greed and Fear. Hoffmann is a colleague of Shefrin. He is a Professor of Finance at Maastricht University in the Netherlands. Shefrin and Hoffmann’s paper, Technical Analysis and Individual Investors, came out February 2014. The paper is concerned with short-term technical analysis and retail traders. Covel and Shefrin discuss how Shefrin came to know that behavioral finance was his path; the two-system framework; the connection to behavioral and eating disorders; the disposition effect; when emotion and reason are in conflict; “transferring your assets” vs. “selling a loss”; distinguishing between rules and discretion; how we stick with rules for ourselves given the context of our humanity; the psychological pitfalls of the 2008 financial crisis; the inevitability of market crises; Minsky and Keynes; the psychology of Keynesian economics; and human ideas surrounding uncertainty. With Arvid Hoffmann, Covel discusses the paper Technical Analysis and Individual Investors; the inspiration for the paper; Hoffmann’s definition of technical analysis; the narrow focus of the paper to short-term trading; technical analysis and trend following; “invest as if the market was efficient”, and “restrict your attempts to beat the market”. Want a free trend following video? Go to trendfollowing.com/win.