Standard Deviations with Dr. Daniel Crosby

If bees organize by innate mandate and chimps through tight-knit social interactions, the miracle of human ascendance in the animal kingdom owes to a penchant for behaving in accordance with social narratives. To put it bluntly, we act as if the stories we make up are real. As Harari writes in the magisterial Sapiens, “As far as we know, only Sapiens can talk about entire kinds of entities that th...

We’re all familiar with the term “keeping up with the Joneses” but it’s doubtful that we understand just how deeply ingrained this is in our concept of success and how the neurological processes we’ve touched on here contribute. Each year, a Gallup poll asks Americans to determine “What is the smallest amount of money a family of four needs to get along in this community?” Gallup finds that the an...

How to Avoid Financial Scams Stephen Greenspan is a psychologist and author of the Annals of Gullibility: Why We Get Duped and How to Avoid It. Greenspan’s book outlines notable instances of gullibility including the Trojan Horse, the failure to locate weapons of mass destruction in Iraq and the bad science surrounding cold fusion. Most of the book focuses on anecdotes, but the final chapter sets...

There are three things that intelligent investors must understand if they are to truly inoculate themselves against the fear peddled by the profiteers of peril: corrections and bear markets are a common part of any investment lifetime, they represent a long-term buying opportunity and a systematic process is required to take advantage of them. A “correction” is defined as a 10% drop in stock price...

We rely on the crowd to do everything from run our governments to help us select a place to eat, but does the wisdom of the crowd apply to the stock market? By examining the anatomy of a good decision set forth by Richard Thaler we arrive at the conclusion that crowds are wise in some respects but can lead us astray in others.

It has been said that "this time is different" is the most expensive phrase in investing but what can be said to be the most profitable words in investing? In this episode, we look at the three tests of an investable idea, providing a tri-part test for discovering enduring alpha.

Did you choose to listen to this podcast? The question seems so simple as to be laughable, but new research paints an increasingly complicated picture with respect to the limits of willpower and free will. In this episode, we tackle such questions as: Why do Audi drivers cheat on their spouses? and Would you have hidden Anne Frank in the attic?

Let's face it, life is complicated. That being the case, it tends to defy easy description and silly platitudes. But one phrase proves to be applicable to every market and life circumstance. Listen in to learn the phrase that can humble you in times of prosperity and give you solace in times of struggle.

We are a nation in love with the idea of trusting intuition, but does it actually help us to make effective decisions? In today's episode we examine some of the research in favor of - and against - this notion of trusting your gut. What emerges is a complex picture that shows intuition to have some real, almost metaphysical power, that is domain specific in the usefulness of its application.

Excessive ego is the enemy of both good living and good investing and yet it is simultaneously a big part of what gets us out of bed in the morning. In this podcast, you'll learn 5 practical ways to make better decisions by beginning to see the world more clearly.

Many of us have had the experience of bickering with friends and loved ones on social media about political, religious or ethical differences of opinion. But does any of it do any good? In this episode, we examine the persistence of belief, the difficulty in changing minds and the reasons why challenging someone with cold, hard facts may only make them MORE wed to their existing bad ideas.

We commonly speak of how "stressed out" we are today but as recently as a century ago, the idea of stress was viewed as unscientific. In this episode, we talk about the physical psychological impact of stress on investment decision-making and risk appetites. The takeaway? Good investing is so difficult partially because it is physically painful.

Stories are powerful means of transmitting information and making sense of our own lives, but do they serve us well as investors? In this episode, we will answer these and other questions by looking at the price of a sequined glove, the performance of initial public offerings and how stories can hijack our brain on the way to our hearts.

It's counterintuitive, but a growing body of research suggests that you just don't like cheap things. In this episode, we discuss how price as a proxy for quality can be in dangerous in investing and give clues as to how behavioral investors can sever this spurious connection.

Today's episode is a tongue-in-cheek examination of the ten best ways to ruin your investment future.

We love to fantasize about winning the lottery or buying a yacht, but have difficulty having sensible conversations about money with those we love. Dr. Crosby examines some of the religious, social and behavioral impediments to having conversations about money and issues a challenge to do better.

Our brains are designed to privilege safety and certainty over happiness and growth. Understanding this simple truth, we begin to realize that the time will never be perfect to do the thing we've always dreamed of and learn to press forward in spite of our fears.

Does everyone deserve a trophy? In today's episode we look at the research around self-esteem and examine how the need to feel special may have played in to the biggest Ponzi scheme in history.

What are the top 5 regrets of the terminally ill and how can they help you live a more fulfilled life?