People are unwittingly taking risks with their investments by entrusting them to advisers who are biased but don?t know it.Does your financial adviser tell you to hold on and never sell? That markets recover in the long run? Does your adviser seem to always have an optimistic disposition? Do they tell you not to worry, no matter what is going on in the outside world?
In
Bullshift, John J. De Goey explores the hidden relationship between bias and financial markets. He makes clear that investors and financial advisers are not the rational decision makers that economic theory assumes them to be, and that ?tried and true? investment advice is not always sound. De Goey shows that advisers are immersed in a culture of Bullshift ? they simply don?t realize how their positive outlook on markets is based on industry-wide groupthink.
Unfortunately, this problem affects much more than just your own investment portfolio. After three years of an international pandemic, the full economic impact of the response to it still hasn?t been felt. There?s more pain coming, but the financial industry?s eternal optimism, abetted by government policies designed to consistently encourage growth and avoid tough choices, is walking us toward a cliff for the global economy.
De Goey helps readers understand the subtle but profound challenges of industry bias, with optimism bias as a particularly vexing issue. The next downturn may be deeper than anything you or your adviser has ever experienced. True optimism comes from a shift to unbiased realism.
- A veteran financial advisor examines how subtle unconscious bias in advisors causes their advice to trend toward an ever-positive outlook on investing
- Using real-world examples and case studies, Bullshift examines the effects of behavourial economics on the financial advising industry and gives a road map for advisors to examine how bias affects their work
- For readers of Malcolm Gladwell and Freakonomics, who want to learn more about new thinking that shapes their world ? especially their pocketbook
- Includes 12 original b&w cartoons to illustrate concepts in book by illustrator Mark Krause
- Author is a high-profile financial advisor with 28 years’ experience who is a frequent commentator on the media, including BNN’s Market Call, and a regular contributor to the Financial Post