Here is a link to my interview with Michael Considine of Share Radio. Where I talk about my research on emotions and investment and the work of the True Potential Centre for the Public Understanding of Finance.
Interview on Share Radio
Author: Mark Fenton-O'Creevy
Mark Fenton-O'Creevy is Professor of Organisational Behaviour at the Open University. He has acted as an academic advisor to BBC programmes including the Money Programme', and 'The Love of Money' and (with Adrian Furnham) created the 'Big Money Test for the BBC's LabUK and the Watchdog programme.
His research focuses on financial decision-making and high impact decision-making in contexts of uncertainty.
Mark has led a varied career. He has at various times worked as a school groundsman, a commis chef, a mathematician in a government research establishment, an outdoor pursuits instructor, a teacher of mathematics, a therapist with emotionally disturbed adolescents, a management consultant, and latterly a business school academic.
On fund-managers, rats and hermit crabs: reversion to familiar habits under stress
Hermit crabs rely on acquiring discarded shells for their protection and are constantly on the look-out for better shells. However, faced with environmental stress they prefer to stick with their old shell, however unsuitable, than risk moving to a new one[i]. Experiments with rats show that under stress habitual behaviour persists longer in the face… Continue reading On fund-managers, rats and hermit crabs: reversion to familiar habits under stress
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New Personal Finance MOOC
The Open University's centre for the Public UnderStanding of Finance (PUFin) launches new MOOC Lead educator: Martin Upton, Director of the True Potential Centre for the Public Understanding of Finance (PUFin) at the Open University Business School, and former Treasurer of Nationwide Business Society Gain the skills to manage your personal finances: managing budgets, debts,… Continue reading New Personal Finance MOOC
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Emotions and the financial behaviour of professionals.
I gave this talk at the launch of Essentia Analytics, an innovative firm developing software to help fund managers track and improve their susceptibility to behavioural biases. http://youtu.be/o5hwI1f06ao
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The Emotional Business of Finance
The video below is a presentation I made at the launch of the Open University Business School's Centre for the Public Understanding of Finance (PuFin). You can find a copy of the slides here. Martin Lewis also made a very engaging presentation about financial education at the same event. Further presentations from the event can… Continue reading The Emotional Business of Finance
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Investment, Emotions and the Temple at Delphi*
Can understanding the psychology of investment behaviour help you outperform the market? Probably not, but it can certainly help reduce the probability that you will under-perform the market. This matters, because the majority of private investors under-perform. One compelling piece of research evidence comes from a careful analysis, carried out by Dalbar research, of the… Continue reading Investment, Emotions and the Temple at Delphi*
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It’s clouds’ illusions I recall . . . trading and the illusion of control
Humans have a great capacity for exercising control over their environment and for detecting patterns in the confusing mass of information they face. This capacity can also mislead; not least in financial markets. Have you ever looked at the clouds and seen faces or the shapes of animals. Did you as a child see monsters… Continue reading It’s clouds’ illusions I recall . . . trading and the illusion of control
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Emotions and financial trading
https://www.youtube.com/watch?v=8LnsfdCIHlA Mark Fenton-O'Creevy and David Jones of IG Index discuss emotions and trading at the London Stock Exchange
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Shopping, impulsiveness and weapons of massive consumption
Marketers need to understand such consumer behavior in order to formulate appropriate marketing strategy, allocate marketing budget below-the-line and design effective marketing tactics…… In such instances the acts may be normatively positive and leave the shopper feeling good Bayley and Nancarrow 1998: 99 And I am a weapon of massive consumptionAnd it's not my fault… Continue reading Shopping, impulsiveness and weapons of massive consumption
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Lions and lion-shaped bushes in financial markets: traders’ expertise in emotion regulation
Fight or flight Imagine you are one of our hunter-gatherer ancestors, walking across the African plains. Or perhaps, in more recent times a Massai tribesman in Kenya. The grass is long in places and punctuated by small trees and bushes. You are carrying no more than a long pointed stick to protect you from dangerous… Continue reading Lions and lion-shaped bushes in financial markets: traders’ expertise in emotion regulation
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On the false contrast between rationality and emotion
It is common to contrast emotions with rationality (usually in tandem with proclaiming the superiority of reason over emotion). Take for example this post on the changingminds blog. It is also the claim at the heart of Ayn Rand's morally barren apologia for the extremes of modern capitalism, 'Atlas Shrugged'. In this book she claims… Continue reading On the false contrast between rationality and emotion
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Welcome to the emotional finance blog
Money fractures marriages, drives wars, inspires art, motivates some people to great achievements, leads others to despair. Fear, desire, love, hate, jealousy, anger, anxiety, relief, shame and many more shades of emotion may attach to money in the course of an ordinary day. (Photo credit: @Doug88888)Yet, economic accounts of human financial behaviour focus on reasoned… Continue reading Welcome to the emotional finance blog
Emotional Finance 