Podcast - Terry Burnham, author of Mean Markets and Lizard Brains
This is my second official "podcast", even though, in effect, all of my previously published audio interviews were also podcasts, I just didn't call them that. For those of you who are new to podcasting, you can get a thorough explanation from Wikipedia.
Summary Info
This edition of the Audio Kimmunique features an interview with Dr. Terry Burnham, author of Mean Markets and Lizard Brains.
Download the mp3 (24 mb) - sounds much better than streaming
Show topics
1. What is the significance of the title, Mean Markets and Lizard Brains?
2. The common irrationalities that afflict all investors
3. The two school of thought - the efficient market school and the behavioral or irrational market school
4. You disagree with the conventional wisdom that it is always a good time to buy stocks, right? In spite of Jeremy Siegel's famous advice to the contrary, it doesn't work that way. Tell us why.
5. Many people now see real estate as the next money making opportunity. Is buying real estate today like buying tech stocks in 1999?
6. Your advice boils down to reducing risk as much as possible - whether in real estate or the financial markets. Why?
7. Reducing risk requires us to rein in our lizard brains. How exactly do we do that?
Show notes
Links to people, companies, articles, blogs, etc. mentioned in the podcast:
The "Chicago School"
Efficient market hypothesis (mainstream)
The physical basis of our craziness
Our "lizard brains"
Mean Markets and Lizard Brains
Over-confidence in investors
The ability to find patterns where there aren't any patterns
The past as a predictor of the future - there is a reason we have to make this disclaimer
Terry says EMH is horrible and destructive
The Nash Equilibrium
Kim asks, "Why are we training our finance graduates in theory we now know is wrong?"
Experimental economics - how do humans make economic decisions
Jeremy Siegel - "Stocks for the Long Run"
Are we in a real estate bubble?
A risk tolerance bubble
The moral of the story - reduce risk wherever possible
The key to being a successful investor is managing your lizard brain so your rational brain can prevail
Show length
43 minutes
Tell me what you think! Leave your comments below.
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
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