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Snap Judgment: When to Trust Your Instincts, When to Ignore Them, and How to Avoid Making Big Mistakes with Your Money

Snap Judgment: When to Trust Your Instincts, When to Ignore Them, and How to Avoid Making Big Mistakes with Your Money

          
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About the Book

"Adler’s argument is illuminating and reveals that, when it comes to investing, we should always have second thoughts about our first impressions." --Publisher's Weekly WHY YOUR INSTINCTS CAN BE YOUR #1 ENEMY—AND HOW TO DEFEAT THEM!   “David Adler’s Snap Judgment is a well-written, entertaining review of human action in risky situations, including stock market behavior and other risk-facing situations. In particular, Adler recounts the conclusions of many practitioners and behavioral finance scholars who have studied such matters. This book is well worth reading, both for its practical advice for the novice and its wealth of illustrations for the pro.” — Harry Markowitz, Nobel Laureate in Economics and father of modern portfolio theory   “David Adler has done a great public service by translating a dazzling array of research in economics and finance into practical terms that anyone can understand and profit from. This book should be required reading for every investor.” — Andrew W. Lo, Professor of Finance, MIT Sloan School of Management   “Investing and managing your money on the basis of emotion, instincts, and intuition is a road straight to the poorhouse. This book teaches you why—and how to rid yourself of the irrational impulses that torment your portfolio.” — Peter Navarro, bestselling author of If It’s Raining in Brazil, Buy Starbucks and The Coming China Wars   “Adler’s book makes a compelling case, illustrated through engaging examples, that the mind and the purse are well served by the triumph of analytic intelligence over intuition.” — Gary Loveman, Chairman, President, & CEO, Harrah’s Entertainment, Inc.

Table of Contents:
Acknowledgments . . . ix About the Author . . . xi Introduction . . . 1 Part I: The Psychology of Financial Decisions Chapter 1. Money Is a Drug . . . 15 Chapter 2. Buy High, Sell Low: The Basic Instinct Driven Error of Investing . . . 21 Chapter 3. More About Stocks: Dividends–Behavioral Ways to Play the Dividend Game . . . 27 Chapter 4. Bonds: Malign Neglect . . . 33 Chapter 5. The Psychology of Why People (Used to) Hate Annuities . . . 39 Chapter 6. The Psychology of Selecting Mutual Funds . . . 47 Chapter 7. Building Your Portfolio the Behavioral Economics Way . . . 55 Chapter 8. Risk Tolerance and Investing . . . 61 Chapter 9. Deconstructing Stock Analysts . . . 67 Chapter 10. Value Investing: Behavioral Origins . . . 73 Chapter 11. Timing Stocks . . . 77 Chapter 12. Momentum . . . 83 Chapter 13. The Ultimate Anomaly: Trusting Your Gut in Finance . . . 91 Part II: The Track, the Stock Market, and Other Types of Gambling Chapter 14. Let’s Talk about Linda: More about Our Intuition . . . 95 Chapter 15. Why Investors Bet on Long-Shot Horses . .109 Chapter 16. Gambling Continued: Stories We Tell Ourselves . . . 113 Chapter 17. Fourth and Ten: Insights into NFL (and Corporate) Decision Making . . . 119 Chapter 18. Football Stories, Continued: The NFL Draft . . . 125 Chapter 19. The Inner Game of Tennis, Revisited . . . 131 Chapter 20. How to Make Money Gambling: Behavioral Insights . . .135 Chapter 21. The Truth About Coin Tosses: They Aren’t Fair . . . 143 Part III: Personal Decisions: Personal Safety, Personal Finance, and Health Choices Chapter 22. Personal Security: Assessing Danger . . . 151 Chapter 23. Credit Card Stories: Beating Your Credit Card Charges Using Behavioral Economics . . . 155 Chapter 24. Snap Judgment and Social Security: When Should You Claim It? . . .163 Chapter 25. How Patients Think Irrationally . . . 167 Chapter 26. Health Insurance Decisions . . . 173 Chapter 27. Car Accidents . . . 177 Part IV: CEO Behavior Chapter 28. Strategic “Styles” . . . 183 Chapter 29. CEO Hubris . . . 189 Chapter 30. Firing CEOs . . . 195 Chapter 31. Using CEO Behavior for Investing . . . 197 Chapter 32. Wall Street CEOs . . . 199 Part V: Psychology and the Credit Crisis Chapter 33. Background: Bubbles and When They Explode . . . 207 Chapter 34. Fear and Loathing in Ft. Lauderdale . . . 213 Chapter 35 Follow the Mortgage . . . 219 Chapter 36. Risky Business: Bank Runs . . . 229 Chapter 37. Euphoria, Fear, and Economics: A Psychological Autopsy of the Crisis . . . 235 Part VI: Conclusion: Debiasing Chapter 38. How Not to Blink in the Face of Financial Panic . . . 249 Chapter 39. A Summing Up: Twilight of the Gods . . . 261 Index . . . 265


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Product Details
  • ISBN-13: 9780137036783
  • Publisher: Pearson Education (US)
  • Publisher Imprint: Addison Wesley
  • Language: English
  • Sub Title: When to Trust Your Instincts, When to Ignore Them, and How to Avoid Making Big Mistakes with Your Money
  • ISBN-10: 0137036787
  • Publisher Date: 31 Mar 2021
  • Binding: Digital download
  • No of Pages: 286


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