IL54: Why Smart Investors Keep Making Crazy Decisions ft. Alex Edmans

In today’s episode we talk with London Business School professor Alex Edmans. He has spoken at Davos, testified in the UK House of Commons and reached millions through his TED Talks. He joins the show to discuss his new book, THE MADNESS OF MARKETS, WHY SMART INVESTORS MAKE CRAZY DECISIONS AND HOW TO EXPLOIT THEM. Alex explains why “mood matters” for markets and the surprising relationship of football results and music playlists to market movements. We discuss why individual investors sometimes have an advantage over professionals in taking advantage of psychological biases and go through practical ways this can be implemented.-----50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to info@toptradersunplugged.comAnd please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Kevin on SubStack & read his Book.Follow Alex on LinkedIn and Read his Book.Episode TimeStamps: 00:00 - Introduction and Alex Edmans’ new book The Madness of Markets02:46 - How football results can move stock markets07:16 - What Spotify playlists can tell us about investor sentiment11:28 - Why individual investors may have an advantage over professionals16:26 - Specialists, generalists and finding your investing edge21:59 - When benchmarks make active managers too conservative26:18 - Risk, alpha and the equity premium puzzle30:07 - Why momentum works and when it crashes35:35 - Where individual investors can exploit overlooked opportunities37:48 - How round numbers influence buying and selling decisions39:54 - The disposition effect and why investors hold onto losers44:12 - Three practical ways to make better investment decisions47:20 - Why writing down your investment thesis matters52:08 - Outsourcing the ugly decisions55:30 - AI, bubbles and the