Why read The Hidden Psychology of Social Networks

Today's episode doesn't have an external guest, but Benjamin and Cameron provide fascinating information on a vast range of topics. First, the discussion centers around the book that Cameron is currently reading and what it is teaching him about social networks, the ego-driven world of social media, and the benefits of anonymity online. The hosts share some of the findings from a very insightful discussion which took place on their anonymous community board platform around people's thoughts on the positive and negative impacts of work. Happiness and the factors that cause it are a big theme in today's show, as is the practice of 'buying the dip.' If you aren't familiar with this term, you should have a decent understanding of what it is and why you shouldn't do it by the time you finish listening. The hosts also discuss the incident that has been called "the largest financial meltdown since 2008," who the RR Model Portfolios are aimed at, and some of the ways people react to crises (in terms of their investments.) Tune in for a whirlwind education on some very important topics!

Key Points From This Episode:

• Benjamin and Cameron share statistics which show how the podcast is growing. [0:02:53]
• How the hosts find the guests that they interview on the podcast. [0:03:10]
• Staggering one year stock performance numbers. [0:04:22]
• Why Cameron is reading The Hidden Psychology of Social Networks, and what he is learning from it. [0:06:56]
• Community boards and the arguments for and against anonymous online communities. [0:08:02]
• The "epic meltdown" which makes up the news story for today's episode. [0:10:17]
• Where the value of the Rational Reminder Model Portfolios lies, who will benefit from them, and who probably won't. [0:13:53]
• Tools which make implementation easy. [0:21:00]
• Data on individuals participating in 401(k) plans and a discussion around how humans deal with crises. [0:22:12]
• The conversation around connection, control, competence, context that was sparked by the question of whether the goal of retiring is a good one to have. [0:26:43]
• Jonathan Haidt's Happiness Hypothesis; the importance of love and work. [0:29:34]
• People don't tend to prioritize time over money to a point where it is detrimental. [0:32:53]
• What it means to 'Buy the Dip,' the reasons that people do it and the problems with engaging in this practice. [0:33:15]
• The paper that Benjamin has produced on 'buying the dip' which will be out by the time you listen to this episode. [0:40:34]
• Why the 'buying the dip' strategy has been particularly costly for Americans, and the contrast between the cases Benjamin looked at in the USA, Australia, Canada and Japan. [0:45:45]
• What people don't realize about leverage and how this impacts their decision to 'buy the dip.' [0:52:00]
• The cards created by the University of Chicago Financial Education Initiative. [0:53:53]
• Cameron asks Benjamin a question from one of the cards; coincidentally it is about happiness. [0:55:00]
• The qualities that Cameron and Benjamin believe are most important in someone who is starting a business. [0:57:05]