Practice Makes Perfect: Building a Well-Behaved Portfolio

Even the most experienced investors can fall prey to one of the 150+ behavioral biases researchers have documented. But Dr. Anastasia Buyalskaya, a behavioral finance advisor to PIMCO, and Devin Ekeberg, PIMCO senior consultant in advisor education, believe the goal isn’t to rationalize them away; it’s to build frameworks that keep biased thinking from driving decision making.   Together with Greg Hall, they discuss:  The behavioral finance biases that hide in plain sight and how they can quietly shape investment decisions   How advisors can act as financial therapists, keeping clients level-headed when emotions run high   What AI really means for advice, both personal and financial, and why those AI compliments aren’t always so nice  Show notes:  [4:01] Intro to Behavioral Finance  [13:10] Common Decision-Making Biases  [20:20] Tools for Avoiding Behavioral Traps  [24:45] Using Behavioral Finance in Advisor Conversations  [34:01] How Sources of Information Influence Behavior  [46:36] Is AI Good or Bad for Decision Making?  [51:27] How are Advisors using AI?  If you enjoyed the episode, check out more PIMCO resources about behavioral finance:  The Behavioral Science Edge  Recognizing your Behavioral Biases  Nudging Yourself to Better Investment Decisions   The discussion and content provided within this podcast is intended for informational purposes only and may not be appropriate for all investors. Reliance upon information provided in a podcast is at the sole responsibility of the listener. The information included herein is not based on any particularized financial situation, or need, and is not intended to be, and should not be construed as, a forecast, research, investment advice or a recommendation for any specific PIMCO or other security, strategy, product or service. Past performance is not a guarantee of future results. All investments contain risk and may lose value. Investors should speak to their financial advisors regarding the investment mix that may be right for them based on their financial situation and investment objective. Podcasts may involve discussions with non-PIMCO personnel and such content contain the current opinions of the speaker but not necessarily those of PIMCO. Other podcasts may consist of audio recording of an existing PIMCO article and such material contains the current opinions of the manager. The opinions expressed in all podcasts are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized. For additional important information go to www.pimco.com/gbl/en/general/legal-pages/podcast-disclosures