Voices in Leadership: Behavioral Finance in Times of Societal and Financial Crises

Our Voices in Leadership conversations cover trending topics with a focus on both financial and human dynamics of today’s multi-generational families. Our guest in this episode spans both worlds.

Chief Investment Officer Rick Pitcairn reconnected in late May with renowned behavioral finance expert Meir Statman, the Glenn Klimek Professor of Finance at Santa Clara University. Meir was one of our keynote speakers at Pitcairn’s annual Wealth Momentum Client Forum.

Rick and Meir spoke about the mindsets of investors in today’s environment and why it’s important to step away from your emotions and engage your cognition when making important decisions.

Here are the topics they discussed:

2:20 – Mindsets of investors today compared to past financial crises.

4:47 – Variations of today’s decision-making competencies, defined as normal smart, normal stupid, and normal ignorant.

6:23 – Normal environment and bias of buyers and sellers

8:33 – Enhancing well-being beyond financial well-being

11:30 – Multi-levels of fear and how they impact cognitive decision-making

15:07 – What is in our control and what is not in our control


Rick and Meir also discussed how well-being is broader than financial well-being. He touches on the multiple domains and how enhancing well-being involves more than just enhancing the financial element. He’s shared a copy of his article, “Financial Advisers as Well-being Advisers,” published in the Journal of Financial Planning.




About Pitcairn

Pitcairn is a true family office and leader in helping families navigate the challenges and opportunities created by the interplay of family and financial dynamics. Through Wealth Momentum®, an experience-based family office model, Pitcairn helps families achieve a more effective and complete experience. Since its inception, Pitcairn has partnered with some of the world’s wealthiest families to meet their needs and drive better outcomes – year to year, decade to decade, generation to generation. Today, Pitcairn is recognized as an innovator, guiding families through generational transitions and redefining the industry standard for family offices. The firm is located in Philadelphia, with offices in New York and Washington, DC and a network of resources around the world.