Why We’re Paying Attention to the Wrong Things, with Dr. Daniel Crosby

#413: If an idea dominates the headlines, we notice it.But maybe we shouldn’t.Today’s guest, psychologist and behavioral finance expert Dr. Daniel Crosby, says there’s a difference between a prediction that gets repeated, and one that’s likely to unfold. What’s salient isn’t accurate, he says. And vice versa. He also talks about how money problems have morphed over time. He chats about how our evolutionary wiring is at odds with our goals. And he even discusses how we’re wired to be ‘lazy’ – and how to work with that tendency instead of fighting an uphill battle against it.Dr. Crosby researches the intersection of mind and markets. His latest work, The Behavioral Investor, is an in-depth look at how sociology, psychology and neurology impact our investment choices. Timing of discussion points as of December 2022:03:10: The overlap between psychology and investing + new ideas04:41: Counterintuitive behavioral finance discoveries 07:27: Money as a “hygiene factor”08:39: The “new class” of money problems for the more affluent13:44: Factors that impact our financial decisions15:22: The influence of evolutionary wiring 17:02: Cognitive and physical wiring leading to laziness and group think27:45: The benefit of community for investors28:52: The four types of behavioral risk: ego, conservatism, attention, and emotion36:21: The three E’s of behavior change: education, environment, encouragement42:30: Confusing things that are loud with things that are likely45:21: The risk of managing emotionFor more information, visit the show notes at https://affordanything.com/episode413 Learn more about your ad choices. Visit podcastchoices.com/adchoices See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.