Behavioral Economics

Feb 22, 2022

“In the 1980s we saw the emergence of behavioral economics. This body of research was conducted by psychiatrists and economists. It’s really good stuff. It won a Nobel Prize for economic science in 2017. This work helped explain how we as human beings respond and react to investment and financial decisions, losses, and gains. For advisors, it gives us a great tool kit to understand human response to that environment.”

“Almost every time, since 1920 that we’ve found ourselves in this situation – that is rising interest rates for the coming months or years – the stock market has almost every time: double digit returns. So, this is a time for us to kind of focus on the long term. Long term for you might be 6 months and if that’s the case, I think 6 months from now you’ll look at January in a very different way.” – BARRY M. CORKERN

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