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

Cover......Page 1
Contents......Page 6
Acknowledgments......Page 10
About the Author......Page 12
Introduction......Page 14
Part I: The Psychology of Financial Decisions......Page 26
 Chapter 1. Money Is a Drug......Page 28
 Chapter 2. Buy High, Sell Low: The Basic Instinct Driven Error of Investing......Page 34
 Chapter 3. More About Stocks: Dividends—Behavioral Ways to Play the Dividend Game......Page 40
 Chapter 4. Bonds: Malign Neglect......Page 46
 Chapter 5. The Psychology of  Why People (Used to) Hate Annuities......Page 52
 Chapter 6. The Psychology of Selecting Mutual Funds......Page 60
 Chapter 7. Building Your Portfolio the Behavioral Economics Way......Page 68
 Chapter 8. Risk Tolerance and Investing......Page 74
 Chapter 9. Deconstructing Stock Analysts......Page 80
 Chapter 10. Value Investing: Behavioral Origins......Page 86
 Chapter 11. Timing Stocks......Page 90
 Chapter 12. Momentum......Page 96
 Chapter 13. The Ultimate Anomaly: Trusting Your Gut in Finance......Page 104
Part II: The Track, the Stock Market, and Other Types of Gambling......Page 106
 Chapter 14. Let’s Talk about Linda: More About Our Intuition......Page 108
 Chapter 15. Why Investors Bet on Long-Shot Horses......Page 122
 Chapter 16. Gambling Continued: Stories We Tell Ourselves......Page 126
 Chapter 17. Fourth and Ten: Insights into NFL (and Corporate) Decision Making......Page 132
 Chapter 18. Football Stories, Continued: The NFL Draft......Page 138
 Chapter 19. The Inner Game of Tennis, Revisited......Page 144
 Chapter 20. How to Make Money Gambling: Behavioral Insights......Page 148
 Chapter 21. The Truth About Coin Tosses: They Aren’t Fair......Page 156
Part III: Personal Decisions: Personal Safety, Personal Finance, and Health Choices......Page 160
 Chapter 22. Personal Security: Assessing Danger......Page 164
 Chapter 23. Credit Card Stories: Beating Your Credit Card Charges Using Behavioral Economics......Page 168
 Chapter 24. Snap Judgment and Social Security: When Should You Claim It?......Page 176
 Chapter 25. How Patients Think Irrationally......Page 180
 Chapter 26. Health Insurance Decisions......Page 186
 Chapter 27. Car Accidents......Page 190
Part IV: CEO Behavior......Page 194
 Chapter 28. Strategic “Styles”......Page 196
 Chapter 29. CEO Hubris......Page 202
 Chapter 30. Firing CEOs......Page 208
 Chapter 31. Using CEO Behavior for Investing......Page 210
 Chapter 32. Wall Street CEOs......Page 212
Part V: Psychology and the Credit Crisis......Page 218
 Chapter 33. Background: Bubbles and When They Explode......Page 220
 Chapter 34. Fear and Loathing in Ft. Lauderdale......Page 226
 Chapter 35 Follow the Mortgage......Page 232
 Chapter 36. Risky Business: Bank Runs......Page 242
 Chapter 37. Euphoria, Fear, and Economics: A Psychological Autopsy of the Crisis......Page 248
Part VI: Conclusion: Debiasing......Page 260
 Chapter 38. How Not to Blink in the Face of Financial Panic......Page 262
 Chapter 39. A Summing Up: Twilight of the Gods......Page 274
 B......Page 278
 D......Page 279
 G......Page 280
 I......Page 281
 M......Page 282
 P......Page 283
 S......Page 284
 W–Z......Page 285