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Bloomberg Businessweek

Mastering Confidence to Make Better Decisions

Jul 27, 2023
16:52
Snipd AI
Peter Atwater, Author of The Confidence Map: Charting a Path From Chaos to Clarity and Adjunct Professor of Economics at William & Mary, discusses analyzing confidence and certainty in decision-making, changing investor preferences and the dangers of market confidence, predicting the future and making better decisions, and abstract vulnerabilities and shifting sentiment.
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Podcast summary created with Snipd AI

Quick takeaways

  • Complacency and certainty can be risky in investing, investors should maintain caution and recognize the divergence between market and consumer confidence.
  • Understanding the different quadrants of confidence helps anticipate future choices and behaviors, providing a sense of control in decision-making.

Deep dives

Fed Meeting and Market Confidence

The recent Fed meeting was unremarkable and lacked any surprises. In the past few weeks, investors have become increasingly optimistic, believing that the worst is behind us. However, complacency and a sense of certainty can be risky, as unforeseen events can disrupt the market. Investors need to be cautious and recognize the divergence between market confidence and consumer confidence. It is important not to overlook potential risks and maintain a diversified portfolio that includes a mix of moods.

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