Can understanding how people think and make decisions give you a competitive advantage?
“Intelligence tests measure important things, but they do not assess the extent of rational thought.”*
The field of behavioral finance is now part of the curriculum for many professional designations including CFA, CFP®, and CIMA. Despite that, very little progress has been made in terms of translating its findings from theory to application.
Decision Economics is designed to educate the advisor on the science of decision making with direct applications for managing client relationships and fostering better investment decisions.
The Decision Economics program is a professional development program designed to translate the findings from the fields of neuroscience and behavioral finance into improved decision-making. This on-line program is approved for CE, including CFP® and includes diagnostic exams and management reporting tools. The program can also be customized, combining on-line and in-person instruction, creating an internal certification program that ensures the training is put into practice.
Course 1 - Overview
The Epicenter of Decision Making; The Brain
Why we are ‘hard wired’ to buy high and sell low
Intelligence versus rational decision making
Dual Processing Theory
Course 2 - Understand
Decision Errors; Heuristics and Biases
Taxonomy of Biases and Heuristics
Practical examples of top Biases and Heuristics
Attribute Substitution: ‘Lazy Thinking’
Course 3 - Recognize
Top Investment ‘Error Points’
The inability to capture Mean Reversion
Over-reliance on experts and forecasts
Uncritical acceptance of ‘Conventional Wisdoms’
Course 4 - Apply
Best Practices to Improve Decision Making
Five Best Practices from the fiduciary world
Implementing the best practices
Connecting the dots
*Keith Stanovich, the Chair of Applied Cognitive Sciences at the University of Toronto and author of What Intelligence Tests Miss
We’d value the opportunity to have a discussion with you. Best wishes for 2017!