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Afford Anything

Feeling Anxious About Your Investments?, with Scott Nations

Afford Anything

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Business, Investing

4.63.4K Ratings

🗓️ 29 June 2022

⏱️ 66 minutes

🧾️ Download transcript

Summary

#388: Recessions are terrifying. Market crashes often bring out the worst in people’s anxieties and fears. This fear triggers us to act even more irrationally than usual – which can lead to making expensive mistakes in our investment portfolios. In today’s episode, Scott Nations, who spent his career studying market volatility, describes some of the most common cognitive biases and irrational behaviors that investors make. He shares tips on how to master the mental game of investing, especially in turbulent times. For more information, visit the show notes at https://affordanything.com/episode388 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

You can afford anything but not everything.

0:11.2

Every choice that you make is a trade-off against something else and that doesn't just

0:14.4

apply to your money, that applies to your time, your focus, your energy, your attention.

0:20.1

This applies to every limited resource that you need to manage, saying yes to something

0:25.8

implicitly means that you're accepting the trade-offs.

0:30.0

And that opens up two questions.

0:32.0

First, what matters most?

0:34.0

Not what does society say ought to matter most, but what is a genuine priority in your

0:39.9

life, even if it's weird?

0:43.1

That's the first question and the second question is, how do you then align your decision-making

0:49.1

to reflect your priorities?

0:50.9

Because oftentimes it's easy to say that we value x, y, or z, but actually make choices

0:57.2

that don't line up with our purported values.

1:01.9

So how do we do that?

1:03.5

Answering those two questions is a lifetime practice.

1:07.1

And that's what this podcast is here to explore.

1:09.7

My name is Paula Pant.

1:10.7

I'm the host of the Afford Anything Podcast.

1:13.5

And as we all know, our fears, our anxieties, our cognitive biases, these can mess up

1:21.6

our decision-making.

1:23.5

And when it comes to how we manage our investment portfolios, our unregulated emotions, or our

1:30.9

unchecked cognitive biases, can lead to some really darn expensive mistakes.

...

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