The Behavioral Investor and The Laws of Wealth ft. Dr. Daniel Crosby – PB160

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Today Dr. Daniel Crosby joins us on the podcast. Dr. Daniel Crosby is a psychologist and behavioral finance expert who helps organizations understand the intersection of mind and markets. Dr. Crosby recently co-authored a New York Times Best-Selling book titled, Personal Benchmark: Integrating Behavioral Finance and Investment Management.

Daniel’s journey into behavioral finance began when he decided that he no longer had a passion for being a shrink and working in clinical psychology. He always had a love for business and once he learned just how much psychology was baked into the world of investing and personal finance he went all-in on behavioral finance In this episode you’ll learn about historical stock market patterns, the difference between a correction and a recession, asset allocation, why you shouldn’t invest based off the media and why you should question your own psychology behind your finances and investments.

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Show Highlights

• Human tendency – What is right now, will be forever
• Why the media loves turmoil in the worlds financial markets
• Knowing enough to act in the appropriate manner with your money but not buying into the media hype
• Controlling the uncontrollable
• Bull Markets vs. Bear Markets
• The economy and the stock market are related but they’re NOT the same thing
• Headlines are a horrible way to invest (March 2020)
  • the stock market has it’s “fastest-ever fall from an all-time high to a bear market” since the Great Depression!
  •  “biggest one-day jump since 1933!”
  • More than 16 million Americans lost their jobs in last 3 weeks, and the DOW HAS IT’S BEST WEEK SINCE 1938!
• It’s almost impossible to time the peak and the bottom of the stock market
• A 10% decline is a correction, a 20% decline is a recession
• The pro’s and con’s of using Robo Advisors for your finances
• Asset Allocation – The mix of your investments. The percentage of your money that’s spread around into different investments.
• Freshly: Good Meals, Made Fresh

Key Takeaway: Making smart investments periodically, rather then trying to time the market, will yield exponentially better returns.

Dr. Daniel Crosby Online

• Website: brinkercapital.com
• LinkedIn: https://www.linkedin.com/in/danielcrosby/
• Twitter: @DanielCrosby
• Books: The Laws of Wealth and The Behavioral Investor

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Learn About How to Invest

• Trade Your 9 to 5 with Investing Made Easy – Tela Holcomb shows you How to Trade Your Way to Financial Freedom and Build a Legacy of Wealth – All Without Working 40+ Hours a Week in her course bundle. Learn how she does it here.
• Trade Your 9 to 5 with Investing Made Easy – Tela Holcomb shows you How to Trade Your Way to Financial Freedom and Build a Legacy of Wealth – All Without Working 40+ Hours a Week in her course bundle. Learn how she does it here.
• The Perfect Portfolio – A step-by-step program to build financial freedom. Your teacher, Kevin L. Matthews II, is a Certified Financial Planner, bestselling author, and former financial advisor. He holds a bachelor’s degree in Economics from Hampton University, obtained a certificate of financial planning from Northwestern University and a certificate in disruptive strategy from Harvard Business School. He was named one of the Top 100 Most Influential Financial Advisors by Investopedia.

Announcements

• Listen to Marcus talk personal finances with a Certified Financial Planner on the Planancial podcast: Episode 73: #FutureRich with Barbara Ginty, CFP.
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