Traditional theory purports that we are all rational individuals.  More recent research has determined otherwise.  This session will explore the biases that many of us unknowingly exhibit and how those biases impact our investment decisions.  We will also offer steps to overcome these biases with the objective of making more informed decisions that should result in a sound investment plan and improved investment results.

The presentation will provide an overview of the principles of behavioral finance and the various biases that impact the decision making process.  Through real life examples, we will show how these biases can impact the investment decisions of public finance officers.  We will then provide tools and techniques to help overcome these biases thereby allowing the public finance officer to make sound investment decisions.

 Statement of Accreditation Rationale:  Richard Thaler, a professor at the University Chicago Booth School of Business was awarded the Nobel Prize in Economic Sciences in 2017 for his pioneering work in the ways human behavior impacts economic and investment decisions. Our presentation will give the audience an in-depth understanding of the concepts behind the field of behavioral finance along with examples of how these biases impact the investment decision making process.  This information should better prepare public finance officers to construct a proper investment strategy going forward.  

Participants will be provided with an in-depth exploration of the current economic environment, a discussion of implementing proper investment strategy, a description of the various investment service providers in the marketplace, and a detailed analysis of investment compliance issues.

The course will focus on investments and participants will come away with solid foundational knowledge of investing public funds. Topics covered will include economic/market environment, portfolio strategy, service providers, and compliance issues. The topics will all be discussed with an end goal of informing participants on coordinating various aspects to better evaluate and manage a proper investment program.