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

The (Expected) Cost of Pessimism (Plus Matthew Dicks on the Value of Storytelling) | RR 267

Рет қаралды 4,842

Күн бұрын

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.
Timestamps:
0:00:00 Intro
0:03:21 Main Topic: The (Expected) Cost of Pessimism
0:05:30 Triumph of Optimism
0:07:45 Pessimism
0:09:16 Media Influence
0:09:46 Impact on Investors
0:26:02 Mark's Minutes
0:34:22 Episode 45: 60 Seconds
0:40:54 Special Guest: Matthew Dicks
0:59:54 Aftershow
Book From Today's Episode:
Storyworthy: Engage, Teach, Persuade, and Change Your Life Through the Power of Storytelling - www.amazon.com/Storyworthy-En...
Join Our Live Event:
What Are my Options with my Options? - us06web.zoom.us/webinar/regis...
Links From Today’s Episode:
Rational Reminder Website - rationalreminder.ca/
Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t....
Rational Reminder on Instagram - / rationalreminder
Rational Reminder on X - / rationalremind
Rational Reminder on KZfaq - / channel
Rational Reminder Email - info@rationalreminder.ca
Benjamin Felix - www.pwlcapital.com/author/ben...
Benjamin on X - / benjaminwfelix
Benjamin on LinkedIn - / benjaminwfelix
Cameron Passmore - www.pwlcapital.com/profile/ca...
Cameron on X - / cameronpassmore
Cameron on LinkedIn - / cameronpassmore
Matthew Dicks - matthewdicks.com/
Storyworthy - matthewdicks.com/storyworthy/
Storyworthy: Engage, Teach, Persuade, and Change Your Life Through the Power of Storytelling - www.amazon.com/Storyworthy-En...
Homework for Life TED - matthewdicks.com/homework-for...
Mark McGrath on LinkedIn - www.linkedin.com/in/markmcgra...

Пікірлер: 23

@WisdomOfTheAged 10 ай бұрын

I think the Mark's Minutes segment was a perfect example of the effectiveness of storytelling. He gave info on TFSAs and risk, followed by the subreddit story of the guy who lost everything.

@MarkMcGrathCFP 10 ай бұрын

Appreciate the feedback!

@jonathanha6683 10 ай бұрын

we love mark!!! incredible story teller and makes the importance of financial planning come to life.

@MarkMcGrathCFP 10 ай бұрын

Thank you so much, means a lot to me to hear that!

@thomas6502 10 ай бұрын

I heard "31 papers" and thought of baskin robbins and how much the pre-diabetic kid in me loved ice cream... how's that for pessimism?🙂 This discussion reminded me about hearing a friend mention hoping dollar cost averaging into VTI, VXUS, BND doesn't prove disastrous. Also, I thought going in to the segment about story telling that I skip to the data as well, but after listening to Matt I'm rethinking--and I put one of his books on my list at the library. Appreciate the channel and the community. Glad to be one of the three that listened to the after show. 🙂 Thanks as always for all y'all do.

@bidaobidao 10 ай бұрын

Mark's remarks?

@darkerisbetter8699 10 ай бұрын

"Mark to Market" for the segment?

@rationalreminder 10 ай бұрын

Top suggestion so far. -Ben

@Ferdinand208 10 ай бұрын

I wish I could tell better stories. So Storyworthy is on the way. Excited to read it.

@PedroOliveira-ez2ni 10 ай бұрын

Instead of Mark's Minute I would call it Check Marck(Mate)

@BobbyMander Ай бұрын

my method: keep buying monthly/weekly or whenever money is available. look at the portfolio when it's going up and ignore it when it's going down. so simple and panic free... :-)

@chrisjeanneret5091 10 ай бұрын

Not sure if is quite the flipside of the TFSA scenario in this video, but it did make me think of the story a while ago about the professional investor who got slammed by the CRA after making huge gains in his TFSA.

@lorenzom7237 10 ай бұрын

I am a small investor and I promote your ideas as much as I can in my inner circle even if I am not yet able to conform to them. I know one day I will switch from my active investing to passive and I will be fine. I enjoy your channel very much. I would like to thank you. Please never stop.

@yu-weiwang6002 10 ай бұрын

We know that there are significant parameter uncertainty over stock returns, and we probably should not implement the result of mean-variance optimization too literally. How to have some reasonable margin of safety without being too pessimistic?

@kevanotrades8488 10 ай бұрын

Great episode! All of those stats from the 31 papers are quite astounding. I've gone from investing in mutual funds, to automated portfolio management through wealthsimple, to buying total market ETFs, to managing my own portfolio, but with every one of your podcasts I'm starting to think I should just not look at my portfolio and use automated purchase of low fee ETFs (like VGRO). Benjamin, I live in Edmonton, it would be cool to meet when you're here in Sept and chat about markets and stuff. Also, yeah Canmore is such a beautiful place!