Episode 267: The (Expected) Cost of Pessimism (Plus Matthew Dicks on the Value of Storytelling)
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:
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/benjaminwfelix/
Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/
Cameron on X — https://twitter.com/CameronPassmore
Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/
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