Countries and culture in behavioral finance
Countries and Culture in Behavioral Finance
Please find the first BFM Video at: http://www.youtube.com/v/FSU4Qqlt0q0
You will find investment strategies to help you reach financial security, grow your assets and achieve a comfortable retirement.
Have you analyzed why Chinese exhibit higher risk tolerance than Americans? Have you ever wondered how Muslims invest money? And did you know a country’s corruption level has an impact on its own diplomats?
Asians, Americans, Europeans, Africans, Australians… The world is a mix of people from these continents with different ideologies and cultures. But what is fascinating is that there is something which is common between these diverse cultures. Guess what? It is MONEY!
Find all the answers in the file attached. Also provided are some healthy investment ideas which can help you reach your goals.
We can summarize some of the practices that should be followed:
- Financial advisers need to probe their clients more about their culture. Also important is to know the client’s obligations towards others. Individualistic and collectivistic groups have different styles of thinking. This reflected in their investment decisions.
- Continuously strive to learn more about investing.
- Understand the complexities in investing. The adviser will have to do more research and be sure that he does not fail his fiduciary duty.
- Saving rates depend a lot on culture. It is important to understand your culture before you make investment decisions. Higher saving rates cultures are more risk tolerant that low saving rate cultures.
- Many investors exhibit different abilities and willingness towards risk. Always honor the willingness to risk because the investor feels comfortable if his risk level is under his/her control.
This newsletter was first published in June of 2011