In this podcast episode, Hugh Massei interviews C. Thomas Howard, CEO of Athena Invest, about his book Behavioral Portfolio Management, a thought-provoking challenge to traditional investment thinking.They explore why investors don’t actually experience risk as market volatility, but rather as loss, fear, and regret, and how portfolios designed without considering real human behavior often fail at the worst possible moments.Hugh and Tom also examine the limitations of Modern Portfolio Theory, the behavioral flaws of traditional risk tolerance questionnaires, and how goals-based investing provides a more practical framework for long-term success. They highlight the crucial role financial advisors play in helping investors stay disciplined and committed during periods of market turbulence.This episode is essential listening for financial advisors, investors, and institutional leaders who want portfolios designed for how people actually behave, not how theory assumes they should.

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

Related