Description
This presentation provides an overview of behavioral finance. It offers a brief historical summary and looks at how this approach can assist advisors in building relationships with clients. This deck reviews some of the more common cognitive biases that behavioral finance can be utilized to mitigate.
Learning Objectives
What is behavioral finance?
How did behavioral finance develop as a concept?
What are some of the more common cognitive biases that behavioral finance can address?
What are the benefits to advisors in incorporating a behavioral approach to their practices?
Detailed Outline of Content
I. Behavioral Finance and its Impact
- A Brief History of Behavioral Finance
- Information Overload and Today’s Investor
- Incorporating Behavioral Finance into an Advisor’s Practice
II. Cognitive Biases/Investor Errors
- Fast Thinking/Slow Thinking
- Rational vs Emotional Investor
- A Brief Overview of Cognitive Biases
III. Emotion and Client Portfolios
- How emotion impacts portfolio growth
- Pullbacks in Perspective
- Behavioral Finance vs. Standard Investment Tenets
- 7 Steps to Better Decision Making
IV. The Guggenheim Process/Resources
- Behavioral Finance Serves as the Foundation to Guggenheim’s Approach
- The Importance of Behavioral Finance in Enhancing Advisor Business
- Guggenheim Resources and Thought Leadership