Trailer for Episode 9 – Diversification

We’ve reached the end of Season 2 of The Nudging Financial Behaviour Podcast. In this episode, you’ll get some bonus questions and answers from all of our guests for the season. We’ve asked them to analyse their own financial behaviour when it comes to the many biases we unpacked throughout the season.  It’s really great to see that we are all human and even people who are experts in finance and behavioural finance can fall prey to these biases. It’s completely natural!  And of course, we can’t wrap up season 2 without saying thank you to our sponsor – IG Markets South Africa – as well as to all of our guests, and the team that helped to put this podcast together. Be sure to like this episode and hit the subscribe button to get notified when new content drops on the channel – there will definitely be more coming soon. You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/better-financial-decisions/   Or watch to the video version of this podcast episode: https://youtu.be/VqGguBZg7vE    Special thanks to everyone who has helped put this series together:      Our sponsor: IG Markets South Africa      Producer: Faeron Wheeler of F Creations      Original music and sound mix: Neil Leachman      Video and editing: Deetlefs Smith and Matthew Carew   Hair and makeup: Ida Webster      Set styling: Michelle Murray of Interiors Etc.    Voice over: Sizo Mphti 

We’re wrapping up Season 2 of The Nudging Financial Behaviour Podcast and asking all of our guests for the season some interesting questions about their own financial behaviour. We extract some final additional wisdom to help all of us make better financial decisions. You don’t want to miss the final episode of the season!

In this episode of The Nudging Financial Behaviour Podcast, we’re looking at how you can overcome Home Bias by chatting about diversification. This is a risk management strategy for investing and a vital part of any investment portfolio.  To help us really understand diversification, we’ve got the queen of ETFs and of spreadsheets Nerina Visser as our guest. Nerina gives plenty of practical tips to help you get to grips with your portfolio and how to ensure you’re properly diversified.    Useful links:  More about Nerina Visser:  https://www.linkedin.com/in/nerina-visser-cfa-26a2272/    https://www.nudgingfinancialbehaviour.com/wp-content/uploads/2024/03/nerina_visser_spreadsheet.xlsx More information on those graphs and pie charts for asset classes - https://www.oldmutualinvest.com/v3/assets/bltf97ab615862b2667/blte1128e0b17590e60/64704ad5e736052b09502459/Long-Term_Perspectives_2023.pdf  Fund managers exhibiting home bias study - https://www.econstor.eu/bitstream/10419/22408/1/dp-296.pdf      Be sure to like this episode and hit the subscribe button to get notified when the next episode drops. You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/diversification-in-investing/  Or watch to the video version of this podcast episode: https://youtu.be/-EXDsQBrSd0    Special thanks to everyone who has helped put this series together:      Our sponsor: IG Markets South Africa      Producer: Faeron Wheeler of F Creations      Original music and sound mix: Neil Leachman      Video and editing: Deetlefs Smith and Matthew Carew   Hair and makeup: Ida Webster      Set styling: Michelle Murray of Interiors Etc.    Voice over: Sizo Mphti 

Episode 9 of The Nudging Financial Behaviour Podcast is coming soon and we’re continuing our discussion on home bias by looking at diversification. We’ve also got Nerina Visser as our guest to help with some very practical tips.

Home bias is just what it sounds like – you prefer to choose things that are closer to home. For investing, this can mean that you have too many assets in your portfolio that are linked to the country you’re living in or the company you work for – and this can lead to major problems.  One of Gizelle’s former PHD students, Shreeya Jugnandan, is our guest for this episode. Shreeya actually unpacked Home Bias for her thesis. She found some interesting stats when looking at how South African’s invest and the disconnect between where they want to live vs where they want to invest their money. She also developed a  and has a practical model to help us combat behavioural biases in your investing decisions.   Useful links:  More about Dr Shreeya Jugnandan:  https://www.linkedin.com/in/dr-shreeya-j-b18781102/   https://onlinelibrary.wiley.com/doi/10.1111/ijcs.12935     The Causal Impact of Media in Financial Markets - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1462416   More on the collapse of Silicon Valley Bank:  Wall Street Journal - https://www.youtube.com/watch?v=QACGoKb48_0  Fortune - https://fortune.com/2023/03/27/silicon-valley-bank-staff-lose-millions-stock-collapse-salary-packages/     More on the studies Shreeya mentions:  Exponential growth bias matters: Evidence and implications for financial decision making of college students in the U.S.A - https://doi.org/10.1016/j.jbef.2018.04.002 How to decrease the amortization bias: Experience vs. rules - https://doi.org/10.2139/ssrn.2421214 A study on the impact of investment experience, gender, and level of education on overconfidence and self-attribution bias - https://doi.org/10.1016/j.iimb.2015.09.001 Trading performance, disposition effect, overconfidence, representativeness bias, and experience of emerging market investors - https://doi.org/10.1002/bdm.561    Be sure to like this episode and hit the subscribe button to get notified when the next episode drops.  You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/mitigating-bias/    Or watch to the video version of this podcast episode: https://youtu.be/AVkqODKbfE8    Special thanks to everyone who has helped put this series together:      Our sponsor: IG Markets South Africa      Producer: Faeron Wheeler of F Creations      Original music and sound mix: Neil Leachman  Video and editing: Deetlefs Smith and Matthew Carew  Hair and makeup: Ida Webster      Set styling: Michelle Murray of Interiors Etc.    Voice over: Sizo Mphti 

It’s the home stretch for season 2 of the Nudging Financial Behaviour Podcast and we’re kicking it off by exploring Home Bias in episode 8. We’ve also got some practical tips for avoiding this bias from Dr Shreeya Jugnandan. She delivered a framework to help us manage our biases (generally) when making decisions – you don’t want to miss that!

In this episode of The Nudging Financial Behaviour Podcast, we’re looking at two biases that are all about the order in which you receive information and how that can impact the way you make decisions. These are the Primacy Effect (also known as First Impression Bias) and Recency Bias. They’re similar but not quite the same.  To help us with our discussion and to give us some more insights into how our biases can impact the way we trade or invest, we’ve got Kristia van Heerden as our guest. Kristia is the Global Education Lead for IG Markets South Africa (the sponsor for this podcast) and has plenty of experience in the trading world. We get straight into it… and talk about common trading mistakes. So, of course, we’re unpacking stop losses and other vital tools that should be part of your trading plan.   Useful links:  More about Kristia van Heerden:  https://justonelap.com/the-fat-wallet-show/  https://za.linkedin.com/in/kristiavheerden Solomon Asch experiment - https://psycnet.apa.org/doiLanding?doi=10.1037%2Fh0055756  Recency and primacy in persuasion as a function of the timing of speeches and measurements by Miller and Campbell - https://psycnet.apa.org/doiLanding?doi=10.1037%2Fh0049330    Be sure to like this episode and hit the subscribe button to get notified when the next episode drops.   You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/trading-mistakes/ Or watch to the video version of this podcast episode: https://youtu.be/hCx-J_hA1aM    Special thanks to everyone who has helped put this series together:      Our sponsor: IG Markets South Africa      Producer: Faeron Wheeler of F Creations      Original music and sound mix: Neil Leachman      Video and editing: Deetlefs Smith and Matthew Carew  Hair and makeup: Ida Webster      Set styling: Michelle Murray of Interiors Etc.    Voice over: Sizo Mphti 

We’ve got a two-for-one special happening in episode 7 of The Nudging Financial Behaviour Podcast! We’re discussing First Impression Bias (or the Primacy Effect) and Recency Bias. We also chat to Kristia van Heerden about the reality of stop-losses and some strategies for trading success. Make sure you stay tuned for the discussion – coming next week. 

Availability bias is all about how we are influenced by information that is readily available, and how we often don’t do enough research before making decisions. In episode 6 of The Nudging Financial Behaviour Podcast, we’re breaking down this bias and taking a look at just how big an impact it can have when we aren’t focusing on the bigger picture or doing the right research.  Our guest for the episode is professor Hersh Shefrin – a legend and pioneer in the field of behavioural finance. It’s an honour to have him on the podcast, and the stories he has to tell are fascinating! Of course, we had to also chat about his book: Beyond Greed and Fear.   Useful links:    More about Professor Hersh Shefrin:   https://www.amazon.com/stores/author/B001HCZZLE/about  https://www.scu.edu/business/finance/faculty/shefrin/     The Psychology of Human Misjudgement by Charlie Munger - https://www.youtube.com/watch?v=zNxsAhc6sk8     More on Rolf Dobelli:  The Art of Thinking Clearly - https://www.amazon.com/Art-Thinking-Clearly-Rolf-Dobelli-ebook/dp/B00IZP6EVQ/  TedTalk - https://www.youtube.com/watch?v=-miTTiaqFlI     Be sure to like this episode and hit the subscribe button to get notified when the next episode drops.    You can also read more on my blog: https://www.nudgingfinancialbehaviour.com/availability-bias-fear-and-hope/  Or watch to the video version of this podcast episode: https://youtu.be/1Od5D1vqbas   Special thanks to everyone who has helped put this series together:      Our sponsor: IG Markets South Africa      Producer: Faeron Wheeler of F Creations      Original music and sound mix: Neil Leachman      Video and editing: Deetlefs Smith and Matthew Carew   Hair and makeup: Ida Webster      Set styling: Michelle Murray of Interiors Etc.    Voice over: Sizo Mphti 

It pretty much goes without saying that any decision we make is based on the information we have at hand – and this is where availability bias comes in. We’re talking to professor Hersh Shefrin in episode 6 of The Nudging Financial Behaviour Podcast to help unravel this bias. And of course, we can’t chat to him without talking about two treacherous emotions: fear and greed!