Snap Judgment: When to Trust Your Instincts, When to Ignore Them, and How to Avoid Making Big Mistakes with Your Money

Blink told people what they wanted to hear: that a quick impression can deliver results even better than careful study and evaluation. But when it comes to your investments and your money, the lessons of Blink are dead wrong! In Snap Judgment, one of the world's leading experts in behavioral finance and economics illuminates the irrational behavior that costs investors so much money, demonstrates why instinctual decision-making can be so costly, and shows how to avoid disastrous subjective biases in your own financial decision-making. Along the way, David Adler introduces the groundbreaking field of behavioral finance, and exposes the surprising behavioral roots of today's worldwide financial crisis. Drawing on the latest research, Adler reveals the predictable ways in which human perceptions and emotions cloud financial judgments, identifying specific errors in trading, investing, portfolio construction, fixed income investing, real estate investing, and corporate finance. Using examples from investing, sports, gambling, and beyond, Adler demonstrates how to systematically ""de-bias"" crucial financial decisions wherever they must be made. These techniques will be indispensable across the board: in personal investing, in life and healthcare planning, and, equally, in institutional investing and enterprise decision-making. You can overcome your natural psychological biases and this book will show you how!