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Some Clients Feel Fear, Anxiety, and Worry More Than Others The tendency to feel worry, fear, and anxiety is normally distributed. Practically, this means that some of your clients will tend to experience these negative emotions more frequently than others, regardless of your efforts to help them become “fearless” investors, budgeters, etc. We refer to the tendency to feel negative emotions in an investing context as volatility composure, and it is related to neuroticism (also …
Article Title: Re-Examining the Experiential Advantage in Consumption: A Meta-Analysis and Review Publication: Journal of Consumer Research Authors: Evan Weingarten, Joseph K. Goodman Citation: Weingarten, E., & Goodman, J. K. (2020). Re-examining the experiential advantage in consumption: A meta-analysis and review. Journal of Consumer Research, 47 (6), 855–877. https://doi.org/10.1093/jcr/ucaa047 Premise Previous research has demonstrated that consumers experience an experiential advantage when they buy experiences rather than material goods. The authors (Weingarten & Goodman, 2020) completed …
Clients have various characteristics that influence their investment decisions. Many advisors understand that a significant part of the value of working with clients is helping them manage their mindset when it comes to investing. However, understanding investor psychology requires knowing what to measure. In the following text, we will examine several characteristics that can influence a client’s overall investor psychology, also known as behavioral risk tolerance. By measuring investor personality, advisors can identify which …
Psychometrics: Measuring Unseen Client Characteristics Psychometrics is the science and practice associated with the measurement of human characteristics. These are often referred to as “unseen” individual characteristics, including cognitive ability, personality, and knowledge. Typically, psychometricians are borne out of applied psychological and educational fields. Psychometrics has been used for over a century in a variety of fields for decision-making, counseling and coaching, and self-assessment, including, but not limited to: Clinical psychology and psychiatry Educational …
Knowledge is power, and the basis of all knowledge is having the right data. Datapoints (or, data points, if you like) are the smallest form of data. Think of them like information atoms. Alone, they’re seemingly small and insignificant. But when you combine them, you can discover trends, uncover essential information, and better understand the world around you. These minuscule particles of information can be essential to learning about others and ourselves. Here’s what …