Financial Advisor | Financial Planners

Financial Planning

480-836-2326

  • Home
  • About Susan Linkous
    • Mission Statement
    • Susan’s Corner
    • Industry Awards
  • Services
  • Blog
  • Financial Reviews
  • Legal Docs
  • Contact Us
  • Account Login
You are here: Home / Blog / It’s Your Behavior – “Susan On Money” for Week of August 21, 2013

It’s Your Behavior – “Susan On Money” for Week of August 21, 2013

August 22 By Linkous Group

Hi Everyone,

If a recording were made of the conversations had with clients, you might be surprised at how little is actually said about money and how greatly emotional the talks are.

I must not be alone for we have the field of Behavioral Economics growing.

Let’s take a look.

~Susan

It’s Your Behavior

Five principles of behavioral economics:

“People are swayed by moral and value judgements. They often do what they believe is ‘right’ rather than what would gain them most profit.

People apply quite different judgements to situations where money isn’t involved. They distinguish between these market and social contexts. To a neoclassical economist, however, it makes no odds whether you give your best friend a book worth $20 for Christmas or a $20 bill.

People are irrational financial investors. They put more weight on recent events than far-off ones, and are not particularly good at calculating probabilities. Similarly, they don’t react well to losing cash. They are prone to hang on to investments since they have a strong sense of possession.

People often follow their habits rather than examining their behavior to see whether it is optimal. Old habits die hard.

People are an amalgam of experiences- theirs and other people’s. They often do things by observing others rather than because of their own individual judgement.”

~Edmund Conway

So. . . the next time we meet, let’s strive to keep this in mind and acknowledge the emotions on the table without giving them a vote.

Until next week,

Susan R. Linkous

Filed Under: Blog

Search

Contact Us

    Your Name (required)

    Your Email (required)

    Your Phone

    Your Message

    captcha

    Verification (type 4 digit code shown above)

    Blog Archives

    • May 2022
    • April 2022
    • March 2022
    • January 2022
    • November 2021
    • March 2021
    • December 2020
    • March 2020
    • February 2020
    • January 2020
    • February 2019
    • October 2017
    • May 2017
    • March 2017
    • December 2016
    • October 2016
    • June 2016
    • May 2016
    • March 2016
    • January 2016
    • December 2015
    • November 2015
    • September 2015
    • July 2015
    • June 2015
    • May 2015
    • April 2015
    • March 2015
    • February 2015
    • January 2015
    • December 2014
    • November 2014
    • September 2014
    • August 2014
    • July 2014
    • June 2014
    • May 2014
    • April 2014
    • March 2014
    • February 2014
    • January 2014
    • December 2013
    • November 2013
    • October 2013
    • September 2013
    • August 2013
    • July 2013
    • June 2013
    • May 2013
    • April 2013
    • March 2013
    • February 2013
    • January 2013
    • December 2012
    • November 2012
    • October 2012
    • September 2012
    • August 2012
    • July 2012
    • June 2012
    • May 2012
    • April 2012
    • March 2012
    • February 2012
    • January 2012
    • December 2011
    • November 2011
    • October 2011
    • September 2011
    • August 2011
    • July 2011
    • June 2011
    • May 2011
    • April 2011
    • March 2011
    • February 2011
    • January 2011
    • December 2010
    • November 2010
    • October 2010

    Copyright © 2022

    The Linkous Group, Ltd. is a Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where The Linkous Group, Ltd. and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by The Linkous Group, Ltd. unless a client service agreement is in place.

    Check out your broker with BrokerCheck ,  Susan Linkous, CRD #2938653 brokercheck_logo-new