How heuristics, filters and reasonable stories help us cope with radical uncertainty and have the courage to make investment decisions. Photo by Tom Grimbert In this episode you’ll learn: Strategies for coping with uncertainty.How to avoid being caught up in a bubble or mania.Why even central banks need a coping strategy.How money helps hedge against an uncertain future. Show Notes Centralverse.org The End of Alchemy: Money, Banking, and the Future of the Global Economy by … [Read more...]
196: How To Survive Financially
Why relying on averages is dangerous given our fate is often determined by extreme events and how we react as financial markets, the economy and our own lives evolve. Photo by William Beem In this episode you’ll learn: How times ensures only the best ideas survive.Why we should focus on tail risk.Why are reaction to actual events as time passes is more important than the average expected outcome of multiple scenarios. Show Notes If it's Tuesday, it's a workday in … [Read more...]
138: Should You Sell Your Stocks Before Trump Takes Office?
How to make decisions in the face of uncertainty and why deciding to sell stocks should be based on feelings of regret rather than gut feelings about what we think will happen with financial markets and the economy. Photo by Matt Johnson In this episode you'll learn: What are the heuristics or rules of thumbs we use to make predictions. What is the availability heuristic. What is hindsight bias. How we make investment decisions based on regret and risk aversion. Do … [Read more...]
