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Blind Spots & Bull Markets: The Psychology of Investing · Money In Motion with Klaas Financial

• 0:00
  Speaker 1: And joining us this morning from Class Financial our CJ
• 0:02
  Speaker 1: Closs and Josh Sterling. CJ, how you doing this morning?
• 0:06
  Speaker 2: I'm doing great, Sean. How are you?
• 0:08
  Speaker 1: I'm doing really well. Great to talk with you. Josh.
• 0:10
  Speaker 1: How have you been it's been a little bit. How
• 0:13
  Speaker 1: thing's been going for you?
• 0:14
  Speaker 3: Oh? Very good, Sean. Really good to be back on
• 0:17
  Speaker 3: and joining you today.
• 0:18
  Speaker 1: It's exciting to have you along. And we're going to
• 0:20
  Speaker 1: be talking about some of the blind spots and bull
• 0:23
  Speaker 1: markets that folks may engage, some of that psychology, some
• 0:26
  Speaker 1: of that deep thinking about about investing in some of
• 0:29
  Speaker 1: those behavioral risks that can can ultimately cost you, and
• 0:33
  Speaker 1: we'll talk with CJ and Josh about that this morning.
• 0:36
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• 0:48
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  Speaker 1: all the great information speaking of great things and great information,
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  Speaker 1: Quiz Question the Week come up during the program, and
• 1:27
  Speaker 1: before we start talking about some of the behavioral risks
• 1:30
  Speaker 1: when it comes to investing and planning for retirement, let's
• 1:34
  Speaker 1: actually look back at last week's show and get the
• 1:37
  Speaker 1: question and answer there to the Class Quiz Question of
• 1:39
  Speaker 1: the Week. CJ.
• 1:41
  Speaker 4: Yeah, thanks Sean, So thank you to everyone who listens
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  Speaker 1: Great opportunity for you again, pay close attention, chance to
• 2:15
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• 2:18
  Speaker 1: as mentioned this week on the show, we'red be talking
• 2:20
  Speaker 1: about blind spots, you know, the kind of stuff you
• 2:22
  Speaker 1: don't see coming, and why bull markets, of all things,
• 2:25
  Speaker 1: can which is interesting to think about, can actually increase
• 2:28
  Speaker 1: your risk of making costly investing mistakes. So, Josh, the
• 2:33
  Speaker 1: first question I've got is is when markets are strong
• 2:37
  Speaker 1: and portfolios are growing, why do investors often feel most
• 2:40
  Speaker 1: confident right before they make those those big mistakes. What's
• 2:44
  Speaker 1: exactly going on there?
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  Speaker 3: Josh.
• 2:46
  Speaker 5: Yeah, that's a great question, Sean, and it gets right
• 2:49
  Speaker 5: to the heart of today's topic. So bull markets have
• 2:53
  Speaker 5: a way of disguising risk. When markets are rising, volatility
• 2:57
  Speaker 5: feels low, confidence feels super high, and people start to believe.
• 3:02
  Speaker 3: That what's been happening is just going to keep happening.
• 3:05
  Speaker 5: It's also worth recognizing that the environment we're in right now,
• 3:09
  Speaker 5: even though markets have moved up and down to start
• 3:11
  Speaker 5: the year and volatility is made to comeback at times,
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  Speaker 5: we're still coming off several years of strong bull market performance.
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  Speaker 5: That combination recent shoppiness layered on top of extended gains
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  Speaker 5: is exactly the kind of backdrop that can amplify behavioral
• 3:28
  Speaker 5: blind spots, which is why the discussion today is so timely.
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  Speaker 4: Yeah, and you know, the danger isn't the market itself,
• 3:37
  Speaker 4: it's the false sense of control that.
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  Speaker 2: Bull markets often create.
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  Speaker 4: That false sense of control is where behavior really starts
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  Speaker 4: to drift. So when markets are rising, investors can begin
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  Speaker 4: to think or feel like they're the ones driving the outcome,
• 3:51
  Speaker 4: that their decisions, their timing, or insights are what's producing
• 3:55
  Speaker 4: the results.
• 3:56
  Speaker 2: And once that.
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  Speaker 4: Mindset takes hold, it can pull people into very different directions.
• 4:02
  Speaker 4: Some start to believe they can predict what's coming next
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  Speaker 4: and take on more risk than their financial plan ever intended.
• 4:08
  Speaker 4: Others begin to fear that everything they've gained is suddenly
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  Speaker 4: at risk and feel an urgent need to protect it
• 4:14
  Speaker 4: before it's all lost. In both cases, the market hasn't
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  Speaker 4: actually changed, but the investor's perception of control has and
• 4:22
  Speaker 4: that's often when decisions start to move away from the
• 4:25
  Speaker 4: financial plan. So at Class Financial, one of our core
• 4:29
  Speaker 4: investment beliefs is that participation matters more than prediction.
• 4:34
  Speaker 2: Let me repeat that.
• 4:36
  Speaker 4: At Class Financial, one of our core investment beliefs is
• 4:38
  Speaker 4: that participation matters more than prediction. We don't believe that
• 4:42
  Speaker 4: long term success comes from trying to time the market,
• 4:45
  Speaker 4: guess the next move, or out smart short term headlines. Instead,
• 4:49
  Speaker 4: we believe that if you focus on building portfolios around
• 4:53
  Speaker 4: a client's financial plan, using that plan to define how
• 4:56
  Speaker 4: much risks they should take on and how long their
• 4:59
  Speaker 4: money needs to work for them, and what the portfolio
• 5:01
  Speaker 4: is actually meant to accomplish, that is the key to investing,
• 5:06
  Speaker 4: not trying to time the market. So when the plan
• 5:09
  Speaker 4: defines the investments instead of the market defining the plan,
• 5:14
  Speaker 4: it creates stability. But even with a great plan in place,
• 5:17
  Speaker 4: human behavior can still get in the way.
• 5:21
  Speaker 1: As I love Well said, Therefore, sure, as we talked
• 5:24
  Speaker 1: this morning with CJ. Closs and Josh Stirling, of course,
• 5:26
  Speaker 1: our retirement planning professionals from Class Financial. If you've got
• 5:29
  Speaker 1: any questions about retirement planning or at the topic at hand,
• 5:32
  Speaker 1: give a call up to hear from this morning six
• 5:34
  Speaker 1: so eight three two one thirteen ten. That's six soh
• 5:36
  Speaker 1: eight three two one thirteen ten. You can learn more
• 5:39
  Speaker 1: about COLSS Financial on their website coss financial dot com.
• 5:42
  Speaker 1: That's coss k l aas Financial dot com and the
• 5:45
  Speaker 1: telephone number six O eight four four two five six
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  Speaker 1: three seven. No charge for that initial get to know
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  Speaker 1: you again their number six oh eight four four two
• 5:56
  Speaker 1: five six three seven. So Josh, Even when people are doing,
• 5:59
  Speaker 1: you know, all the right things on paper, there's still
• 6:02
  Speaker 1: an eternal struggle going on. What am I missing there?
• 6:06
  Speaker 3: Yeah?
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  Speaker 5: Absolutely, this is something we see every single day. A
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  Speaker 5: good financial plan doesn't eliminate emotion, It anticipates it. Markets
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  Speaker 5: are uncertain by nature, and uncertainty creates this kind of discomfort.
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  Speaker 5: When people feel uncomfortable, they're tempted to act just to
• 6:25
  Speaker 5: feel back and control.
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  Speaker 3: Again.
• 6:27
  Speaker 5: What's interesting is that these challenges don't show up because
• 6:30
  Speaker 5: investors lack intelligence. Many of the people who struggle the
• 6:34
  Speaker 5: most with staying disciplined are highly successful analytical professionals. The
• 6:39
  Speaker 5: issue isn't the knowledge that it's the behavior under that pressure.
• 6:45
  Speaker 5: That's where behavioral bias comes in. These are predictable patterns
• 6:49
  Speaker 5: in how people think and react, especially when markets are
• 6:53
  Speaker 5: strong or volatile. Today, we want to walk through some
• 6:56
  Speaker 5: of the most common ones we see and more importantly,
• 6:59
  Speaker 5: how to wreck ignize them before they cause permanent.
• 7:01
  Speaker 1: Do well, that's going to be a fantastic conversation. We're
• 7:04
  Speaker 1: going to dig more into those behavioral biases. We will
• 7:07
  Speaker 1: do that in just a moment. In the meantime, you
• 7:08
  Speaker 1: have been to the website Cossfinancial dot com. That's Coss
• 7:11
  Speaker 1: Financial dot com k l aas Financial dot com. Great
• 7:14
  Speaker 1: opportunity right now to head on over to the website.
• 7:16
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  Speaker 1: as well as listen back to this in previous shows podcast.
• 7:21
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• 7:24
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• 7:28
  Speaker 1: aas Financial dot com. Or give the call right at
• 7:30
  Speaker 1: the office here in Madison six oh eight four four
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  Speaker 1: four four two five six three seven. We'll continue our
• 7:43
  Speaker 1: conversation with CJ and Josh. We will do that next
• 7:46
  Speaker 1: as Money in Motion with COSS Financial continues right here
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  Speaker 1: on thirteen ten WUIB eight. Our fold lines are open
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  Speaker 1: for you if you've got questions, telephone number six oh
• 7:55
  Speaker 1: eight three two one thirteen ten. That's six oh eight
• 7:58
  Speaker 1: three two one thirteen ten at you on the air
• 8:00
  Speaker 1: with CJ Class and Josh Sterling, our retirement planning professionals
• 8:04
  Speaker 1: from Class Financial. Never forget about that website, COSS Financial
• 8:07
  Speaker 1: dot com. That's Class k l aa S Financial dot
• 8:10
  Speaker 1: com and Josh. Just before the break, you had mentioned
• 8:12
  Speaker 1: some of these behavioral biases. Let's kind of break those down.
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  Speaker 1: Let's kind of get get a kickstart on those. Which
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  Speaker 1: one is kind of the one that jumps out the
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  Speaker 1: most to you.
• 8:23
  Speaker 5: Yeah, Well, let's start with the one bias that we
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  Speaker 5: see the most often, which is the anchoring bias. Now,
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  Speaker 5: anchoring happens when investors latch on to a specific number
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  Speaker 5: and then treat it as the reference point for every
• 8:36
  Speaker 5: decision they made. That number could be many different things.
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  Speaker 5: It might be the price that they paid for a stock.
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  Speaker 5: It might be the highest value of their portfolio, or
• 8:47
  Speaker 5: it might be the interest rate or what the market's
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  Speaker 5: basically used to be. The most common example we see
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  Speaker 5: is individuals watching their total portfolio on their monthly statements
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  Speaker 5: that they received. People will anchor it to nice round numbers,
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  Speaker 5: so let's say five hundred thousand dollars. Their perception of
• 9:05
  Speaker 5: the market or decisions around how much the risk they
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  Speaker 5: can take is suddenly influenced by the movement on this number.
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  Speaker 5: If their portfolio jumps from five hundred thousand to six
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  Speaker 5: hundred thousand, they may suddenly feel very good about their
• 9:19
  Speaker 5: portfolio and say, let's take on more risk, or vice versa.
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  Speaker 5: Let's say it goes from five hundred thousand and then
• 9:25
  Speaker 5: suddenly drops down to four hundred thousand. They may may
• 9:28
  Speaker 5: be calling us, asking to sell out of the market completely,
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  Speaker 5: even when their financial plan clearly shows that they should
• 9:35
  Speaker 5: neither increase risk or sell out of the market. Anchoring
• 9:39
  Speaker 5: to a single number kind of distorts perspective. It pulls
• 9:42
  Speaker 5: attention away from the plan and instead focuses it on
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  Speaker 5: a number that may no longer be relevant.
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  Speaker 1: And Josh, I think as they're talking it makes perfect sense.
• 9:53
  Speaker 1: I do sometimes think when we're in the mix of it, though,
• 9:55
  Speaker 1: we have a hard time seeing the forest through the trees.
• 9:58
  Speaker 1: How can somebody tell if anchoring is influencing their decisions?
• 10:03
  Speaker 3: Yeah?
• 10:03
  Speaker 5: Well, thankfully, This is a very simple test. You just
• 10:06
  Speaker 5: have to ask yourself, are you using an old price
• 10:10
  Speaker 5: or pass value as kind of a decision rule instead
• 10:13
  Speaker 5: of asking what the role of that investment actually plays
• 10:16
  Speaker 5: in your plan. At COSS we try to replace price
• 10:20
  Speaker 5: anchors with plan anchors, things like time horizons, cash needs,
• 10:25
  Speaker 5: risk capacity. When you're anchoring decisions to the plan instead
• 10:30
  Speaker 5: of a past number, clarity improves dramatically.
• 10:34
  Speaker 3: C J.
• 10:35
  Speaker 5: I guess what is the second bias that we typically see?
• 10:38
  Speaker 2: Yeah, good question.
• 10:39
  Speaker 4: The second one we often see is what we call
• 10:41
  Speaker 4: the framing bias. So framing bias occurs when the way
• 10:45
  Speaker 4: a choice is presented influences decisions more than the underlying
• 10:50
  Speaker 4: facts themselves. A classic example comes from behavioral research study
• 10:55
  Speaker 4: called the Framing of Decisions and the Psychology of Choice.
• 10:58
  Speaker 4: In that study, parts were asked to choose between two
• 11:02
  Speaker 4: medical programs to address a deadly disease. When the outcomes
• 11:06
  Speaker 4: were framed in terms of lives, saved. Most people preferred
• 11:10
  Speaker 4: the option that would certainly save a specific number of people,
• 11:13
  Speaker 4: even if the alternative had a higher potential benefit. But
• 11:17
  Speaker 4: when the exact same choices were framed in terms of
• 11:19
  Speaker 4: people who would die, preferences flipped, so, say, faced with
• 11:24
  Speaker 4: certain losses, participants suddenly became much more willing to take risk,
• 11:29
  Speaker 4: despite the math being identical in both scenarios. So you
• 11:33
  Speaker 4: kind of see that framing bias play out in this example.
• 11:37
  Speaker 4: So nothing about the facts change, only the words did.
• 11:40
  Speaker 4: Yet those words dramatically altered how people felt about the decision.
• 11:44
  Speaker 4: So we see that same dynamic play out in the
• 11:47
  Speaker 4: investing world. You'll hear strategies described as protecting against loss
• 11:52
  Speaker 4: rather than limiting upside, or guaranteed income instead of illiquid
• 11:57
  Speaker 4: and expensive. Those frames trigger emotional responses safety, fear, certainty
• 12:02
  Speaker 4: that can push investors towards decisions that might take that
• 12:06
  Speaker 4: that might not make it if the trade offs were
• 12:08
  Speaker 4: described more neutrally. That's why framing bias is so powerful.
• 12:13
  Speaker 4: It doesn't change the numbers, it changes perception. The discipline
• 12:17
  Speaker 4: for investors is to slow the conversation down and ask,
• 12:21
  Speaker 4: what are the trade offs?
• 12:23
  Speaker 2: What am I giving up to get.
• 12:24
  Speaker 4: This benefit, and how does this decision fit into my
• 12:28
  Speaker 4: overall plan.
• 12:29
  Speaker 2: Let me let me give you a specific example of this.
• 12:33
  Speaker 4: If you'll often hear people say this is not dogging
• 12:36
  Speaker 4: on annuities by any means, but people will say, I
• 12:39
  Speaker 4: bought an annuity because of the downside protection and the
• 12:44
  Speaker 4: fact that I can never go negative and it gives
• 12:48
  Speaker 4: me income for life and all these great things, and
• 12:51
  Speaker 4: which is fine, that's that may be true. And then
• 12:53
  Speaker 4: we go what are the downsides, you know, just to
• 12:56
  Speaker 4: kind of test whether the consumer knew what they were
• 12:58
  Speaker 4: doing before they bought it, and they go, I don't think.
• 12:59
  Speaker 2: They're there are any downsides any you.
• 13:02
  Speaker 4: Go well, life is a series of trade offs, right,
• 13:05
  Speaker 4: pros and cons. There is no free lunch when it
• 13:08
  Speaker 4: comes to this stuff. So if you ever have a
• 13:11
  Speaker 4: list of just positives and there is no trade off
• 13:14
  Speaker 4: or no downside that you have heard of, you're probably
• 13:17
  Speaker 4: being sold something and you don't.
• 13:19
  Speaker 2: Have a fooduciary working on your behalf. So listen. We
• 13:22
  Speaker 2: always will talk with our clients.
• 13:24
  Speaker 4: More risk, more equity exposure, more risk, more potential long
• 13:29
  Speaker 4: term return, but way more volatility, lower risk, lower return,
• 13:33
  Speaker 4: lower expectations but less volatility. So we always try to
• 13:38
  Speaker 4: talk in terms that talk about the kind of the
• 13:41
  Speaker 4: the balance between those decisions.
• 13:43
  Speaker 1: Talk this morning with CJ. Closs and Josh Struling our
• 13:45
  Speaker 1: retirement planning professionals from Class Financial online, Classfinancial dot com.
• 13:50
  Speaker 1: That's Claus k l aa s Financial dot com and
• 13:53
  Speaker 1: their telephone number six So eight four four two five
• 13:56
  Speaker 1: six three seven. So CJ. If I'm hearing, you're right,
• 13:59
  Speaker 1: the danger is an necessarily bad information. It's incomplete context exactly.
• 14:05
  Speaker 2: Yeah.
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  Speaker 4: The challenge isn't the math, it's how decisions are framed
• 14:08
  Speaker 4: under pressure. So Josh, can you help us with the
• 14:11
  Speaker 4: final bias we're going to talk about today?
• 14:14
  Speaker 3: Definitely?
• 14:15
  Speaker 5: The final bias will we'll chat through is over confidence,
• 14:20
  Speaker 5: and this surprisingly shows up the most during full markets
• 14:24
  Speaker 5: the markets were in currently typically after a period of
• 14:27
  Speaker 5: strong results, we tend to overestimate our abilities to predict markets,
• 14:32
  Speaker 5: picking winners or timing the markets, kind of mistaking reskill
• 14:37
  Speaker 5: rather than just favorable conditions that were already in. Research
• 14:42
  Speaker 5: consistently shows that excessive trading, which often comes from overconfidence,
• 14:48
  Speaker 5: tends to reduce long term returns the most often or
• 14:52
  Speaker 5: the more often investors try to outsmart the market, the
• 14:55
  Speaker 5: harder it becomes to actually stay.
• 14:57
  Speaker 3: Invested throughout full cycles.
• 15:00
  Speaker 5: We see this dynamic show up clearly in Vanguard's How America.
• 15:04
  Speaker 3: Saves twenty twenty five report.
• 15:07
  Speaker 5: This report looks at real world outcomes for four one
• 15:10
  Speaker 5: k participants. Vanguard compares investors who use professionally managed target
• 15:15
  Speaker 5: date funds, which are diversified, rules based solutions, in comparing
• 15:21
  Speaker 5: those to people who build and manage their own portfolios.
• 15:26
  Speaker 5: What's interesting is that over the past five years, looking
• 15:29
  Speaker 5: at the time period from twenty twenty to twenty twenty four,
• 15:32
  Speaker 5: the average returns for both groups was actually roughly the same,
• 15:35
  Speaker 5: right around eight percent. On the surface, that might suggest
• 15:39
  Speaker 5: that managing your own portfolio works just as well, but
• 15:43
  Speaker 5: the more important insight is found in the dispersion of outcomes.
• 15:48
  Speaker 5: Investors using target date funds experienced a much narrower range
• 15:52
  Speaker 5: of results, with outcomes clustering between roughly four point eight
• 15:56
  Speaker 5: percent and nine point one percent annualized. By contrast, investors
• 16:02
  Speaker 5: who manage their own allocations saw far wider spreads from
• 16:06
  Speaker 5: strong outcomes and hear thirteen percent on the high end
• 16:09
  Speaker 5: to much weak.
• 16:11
  Speaker 3: Results around two percent on the low end.
• 16:14
  Speaker 5: That wider dispersion is where overconfidence shows up when investors
• 16:18
  Speaker 5: feel a control and trade more frequently. Some are going
• 16:21
  Speaker 5: to get lucky, but many are not. Structure and professional
• 16:27
  Speaker 5: manage they don't necessarily boost average returns, but they significantly
• 16:32
  Speaker 5: reduce the risk of poor outcomes driven by that overconfidence.
• 16:36
  Speaker 3: And that's because you're.
• 16:37
  Speaker 5: Relying on these rules based products. It's going to create
• 16:42
  Speaker 5: a lot more stability, hopefully in the long run, at costs.
• 16:46
  Speaker 5: We counter over confidence with that structure, written policies, diversification,
• 16:52
  Speaker 5: rebalancing rules, and discipline that doesn't depend on how confident
• 16:56
  Speaker 5: or nervous someone feels in that moment. Is actually myself
• 17:01
  Speaker 5: and my my Investment Policy Committee.
• 17:03
  Speaker 1: Team really important as we talk about this stuff with
• 17:06
  Speaker 1: Josh Stirling and CJ. Closs, really great information highlighting some
• 17:10
  Speaker 1: of those behavioral risks out there when it comes to
• 17:14
  Speaker 1: investing in blind spots. You may have, you know, one
• 17:17
  Speaker 1: of the areas that we haven't touched on, and we're
• 17:19
  Speaker 1: going to get into it in just a moment. Is
• 17:20
  Speaker 1: AI What effect has AI had on some of this stuff.
• 17:23
  Speaker 1: We'll get the details from CJ and Josh. We'll get
• 17:25
  Speaker 1: that in just a moment. I hope you had a
• 17:27
  Speaker 1: chance to check out the website. If not, head on
• 17:28
  Speaker 1: over there now costs Financial dot com that's coss k
• 17:32
  Speaker 1: l aa as Financial dot com. You can learn all
• 17:34
  Speaker 1: about Coss Financially. You can learn about the team, their
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  Speaker 1: separate divisions, how they can help you or if you're
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  Speaker 1: an employer. They've got great stuff up there as well
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  Speaker 1: as links to this in the most previous podcast. Again
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  Speaker 1: that available to you at Cossfinancial dot com. They're teleph
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  Speaker 1: number six O eight four four two five six three seven.
• 17:49
  Speaker 1: No charge for that initial get to know you appointment
• 17:51
  Speaker 1: at Loss Financial. It will be complementary to you again
• 17:54
  Speaker 1: their number six oh eight four four two five six
• 17:56
  Speaker 1: three seven. We'll take it down the home stretch. We'll
• 17:58
  Speaker 1: talk a little bit about AI the class quiz question
• 18:01
  Speaker 1: the week next as Money in Motion with Class Financial
• 18:03
  Speaker 1: continues right here on thirteen den wuib I talk this
• 18:06
  Speaker 1: morning without retirement planning professionals CJ. Closs and Josh Stirling.
• 18:10
  Speaker 1: They come to us from Class Financial online. Class Financial
• 18:13
  Speaker 1: dot com. That's Coss k l Aasfinancial dot com and
• 18:17
  Speaker 1: they're telephon number six so eight four four two five, six,
• 18:20
  Speaker 1: three seven. Now, before we wrap, one thing I did
• 18:23
  Speaker 1: want to ask you about in Josh, I'll put this
• 18:25
  Speaker 1: one to you is the growing use of AI. Does
• 18:28
  Speaker 1: that bring any new blind spot potential for investors?
• 18:31
  Speaker 3: Yeah, it's actually really interesting.
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  Speaker 5: I feel like every new wonderful technology that we get,
• 18:37
  Speaker 5: eventually you start to realize, oh, there are some biases
• 18:40
  Speaker 5: in these, and you know what, AI is no exception
• 18:43
  Speaker 5: to that. So recent research highlighted by the CFA Institute's
• 18:48
  Speaker 5: Enterprising Investor blog, they're pointing to a new source of
• 18:52
  Speaker 5: behavioral bias, bias that's embedded in artificial intelligence tools themselves.
• 18:58
  Speaker 5: AI systems learn from existing financial commentary, news research, market narratives,
• 19:05
  Speaker 5: but that information is not evenly distributed. Larger, more popular
• 19:11
  Speaker 5: companies receive far more attention, which means those AI tools
• 19:16
  Speaker 5: can unintentionally reinforce crowding, concentration, and attention bias rather than
• 19:22
  Speaker 5: uncovering new opportunities. Now, the takeaway from this isn't that
• 19:26
  Speaker 5: AI is bad. It's that it should be treated as
• 19:29
  Speaker 5: an input, not a decision maker. Used thoughtfully, it can
• 19:34
  Speaker 5: improve efficiency and be a really good idea generator, but
• 19:38
  Speaker 5: judgment diversification and risk management, it's still got to be
• 19:42
  Speaker 5: human driven. Just like with every other bias we've discussed today,
• 19:47
  Speaker 5: awareness is simply the first step. The goal isn't to
• 19:50
  Speaker 5: eliminate technology, it's to understand how it frames that information
• 19:55
  Speaker 5: and to make sure it doesn't quietly push portfolios to
• 19:58
  Speaker 5: the crowd.
• 19:59
  Speaker 1: Love here. That's it's interesting and fascinating and I love
• 20:02
  Speaker 1: that the idea. Know you think about AI and yeah,
• 20:04
  Speaker 1: efficiency and ideas and other things. What a great tool
• 20:07
  Speaker 1: it is. But again, with everything there are there are
• 20:09
  Speaker 1: some goods, bads, and some things that need to be
• 20:11
  Speaker 1: understood and CJ. Before we wrap up this week, some
• 20:15
  Speaker 1: main takeaways for folks. Things that should If anything sticks
• 20:18
  Speaker 1: out in people's minds today, what should they be?
• 20:22
  Speaker 4: Yeah, three things really stand out to me from today's show.
• 20:25
  Speaker 2: So.
• 20:25
  Speaker 4: First, strong markets don't eliminate risk, They often change where
• 20:30
  Speaker 4: the risk shows up. In bull markets, the biggest threat
• 20:33
  Speaker 4: isn't usually price declines. It's over confidence, increased activity and
• 20:38
  Speaker 4: decisions drifting away from your well designed financial plan. Second,
• 20:43
  Speaker 4: structure matters more than prediction. The investors who tend to
• 20:47
  Speaker 4: have the most consistent outcomes aren't the ones making the
• 20:50
  Speaker 4: most decisions. They're the ones with clear rules, diversification, and
• 20:55
  Speaker 4: an investment process that doesn't depend on how confident or
• 20:58
  Speaker 4: nervous they feel in the moment. And third, behavior compounds
• 21:04
  Speaker 4: just like returns do. Every time you stay disciplined, rebalance thoughtfully,
• 21:09
  Speaker 4: and stick with a strategy through uncertainty, you give compounding
• 21:13
  Speaker 4: another chance to work. Every time you react emotionally or
• 21:16
  Speaker 4: chase what feels obvious, you interrupt that process.
• 21:20
  Speaker 2: So listen.
• 21:21
  Speaker 4: At the end of the day, successful investing isn't about
• 21:23
  Speaker 4: seeing the future more clearly than everyone else. It's about
• 21:26
  Speaker 4: building a plan you can stick with in good markets
• 21:30
  Speaker 4: and in challenging ones.
• 21:32
  Speaker 1: Great takeaways there, great conversation this week. Don't forget if
• 21:35
  Speaker 1: you missed any part today's show, you can always listen
• 21:37
  Speaker 1: back right online Class financial dot com. That's Class klaas
• 21:41
  Speaker 1: Financial dot com. You can also schedule a conversation right
• 21:45
  Speaker 1: from the website. That's Class financial dot com speaking up
• 21:48
  Speaker 1: scheduling a conversation. Don't forget their telephone number six oh
• 21:51
  Speaker 1: eight four four two five six three seven No charge
• 21:54
  Speaker 1: for that initial gets know you chat with Class Financial.
• 21:56
  Speaker 1: This is going to be complimentary to you again. Their
• 21:58
  Speaker 1: number six oh eight four four two five, six three seven.
• 22:01
  Speaker 1: You want to hold on to that telephone number now
• 22:03
  Speaker 1: because it's time for the class quiz question in the week.
• 22:05
  Speaker 1: It works like this. In just a moment, I'll ask
• 22:07
  Speaker 1: you the class quiz question the week. We'll then have
• 22:09
  Speaker 1: thirty minutes from the today's program to call the Class
• 22:11
  Speaker 1: Financial office right here in Madison at six oh eight
• 22:14
  Speaker 1: four four two five six three seven. And if you
• 22:16
  Speaker 1: are the first call correct answer, win this week's prize,
• 22:19
  Speaker 1: which is a twenty five dollars gift card two Starbucks.
• 22:22
  Speaker 1: This week's class quiz question week? Is this true or false?
• 22:26
  Speaker 1: One of Koss Financial's core investment beliefs is that participation
• 22:31
  Speaker 1: matters more than prediction. Telephone number six oh eight four
• 22:34
  Speaker 1: four two five six three seven, first gart correct answer
• 22:37
  Speaker 1: and that twenty five dollars gift card to Starbucks, nor
• 22:39
  Speaker 1: forget as well. That's Coss Financials Office right here in Madison,
• 22:42
  Speaker 1: that number six oh eight four four two five six
• 22:45
  Speaker 1: three seven. CJ. Josh. Great chatting with both of you
• 22:48
  Speaker 1: guys this morning. You enjoy this fantastic day.
• 22:51
  Speaker 2: Thanks Sean.
• 22:52
  Speaker 3: Thank you very much.
• 22:53
  Speaker 1: Sean, Take care, guys. News comes your way next here
• 22:55
  Speaker 1: on thirteen ten dough, Will you have you