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Episode 267: The (Expected) Cost of Pessimism (Plus Matthew Dicks on the Value of Storytelling)

Episode 267: The (Expected) Cost of Pessimism (Plus Matthew Dicks on the Value of Storytelling)

FromThe Rational Reminder Podcast


Episode 267: The (Expected) Cost of Pessimism (Plus Matthew Dicks on the Value of Storytelling)

FromThe Rational Reminder Podcast

ratings:
Length:
60 minutes
Released:
Aug 24, 2023
Format:
Podcast episode

Description

Today's show is centred on the expected cost of pessimism and how investor expectations of loss negatively affect financial decisions. After concisely exploring the data and literature on the subject, we get into a few solutions to this dynamic and talk about how to find a way around natural human tendencies and myopic loss aversion. We then get into our first Mark's Minutes segment, with our colleague Mark McGrath briefly explaining some interesting ideas about risk and tax-free savings accounts. For today's episode retrospective, we go over Episode 45 and the conversation we had with Moira Somers about effective communication and advice methods. Matthew Dicks, the author of Storyworthy then joins us to offer some insight into the utility of stories in the different areas of life, including financial advice, and more relaxed social settings. Matthew does a great job of describing and demonstrating how stories connect people, and allow ideas to flow in a natural and impactful way, so make sure to tune in.   Key Points From This Episode:   Introducing the inverse relationship between subjective return expectations and expected returns. (0:02:55).   Potential solutions to this issue; checking investments less frequently, ignoring financial media, healthy advisor relationships, and more.  (0:15:39) Mark's Minutes: Mark McGrath shares some background on the TFSA and its positive and negative sides. (0:22:59) A quick recap of our episode with Moira Somers and its lessons on effective financial advice. (0:30:36) An introduction to Matthew Dicks and some thoughts on storytelling. (0:32:05) Matthew talks about the power of storytelling to shape the world. (0:36:35) Strategies for finding, crafting, and telling great stories. (0:41:45) Matthew weighs in using storytelling in the world of investing and financial advice. (0:48:23) Finding the value in your own personal data and experience. (0:52:04) Today's after-show: upcoming events and news from home. (0:54:40)   Links From Today’s Episode:   Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Matthew Dicks — https://matthewdicks.com/ Storyworthy — https://matthewdicks.com/storyworthy/ Storyworthy: Engage, Teach, Persuade, and Change Your Life Through the Power of Storytelling — https://www.amazon.com/Storyworthy-Engage-Persuade-through-Storytelling/dp/1608685489 Homework for Life TED — https://matthewdicks.com/homework-for-life/  Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp?originalSubdomain=ca Triumph of the Optimists — https://www.amazon.com/Triumph-Optimists-Global-Investment-Returns/dp/0691091943 John List — https://voices.uchicago.edu/jlist/ Cliff Asness — https://www.aqr.com/About-Us/OurFirm/Cliff-Asness-Bio Moira Somers — https://moneymindandmeaning.com/ Episode 45 with Moira Somers — https://rationalreminder.ca/podcast/45 Advice That Sticks: How to give financial advice that people will follow — https://www.amazon.com/Advice-That-Sticks-financial-advice/dp/1788600142 The Prof G Podcast — https://podcasts.apple.com/us/podcast/the-prof-g-pod-with-scott-galloway/id1498802610 Scott Galloway — https://www.profgalloway.com/ The Moth — https://themoth.org/ Speak Up — https://matthewdicks.com/speakup/ Steve Jobs — https://hbr.org/2012/04/the-real-leadership-lessons-of-steve-jobs A Few Good Men — https://www.imdb.com/title/tt0104257/ Aaron Sorkin — https://www.imdb.com/name/nm0815070/  Slack — https://slack.com/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfe
Released:
Aug 24, 2023
Format:
Podcast episode

Titles in the series (100)

A weekly reality check on sensible investing and financial decision-making for Canadians. Hosted by Benjamin Felix and Cameron Passmore of PWL Capital.