Intuitive Finance with Dylan Bain
Intuitive Finance with Dylan Bain
Dylan Bain
How Emotions Shape Corporate Decision Making
24 minutes Posted Apr 7, 2023 at 8:48 am.
] Why money is emotional [03:06] What is an inverted yield curve? [07:33] How corporate layoffs can signal a recession [09:58] Why interest rates and company debt aren't related [13:25] Why we make emotional decisions [20:37] How social media optimizes validation through dopamine hits   Links and Resources   Fiscally Savage Fiscally Savage Tools Fiscally Savage on Instagram Fiscally Savage on Facebook Fiscally Savage on Twitter
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When it comes to making financial decisions, we often think of logic and reason. After all, money is about numbers, calculations, and profits. We like to believe that we make logical choices based on the information we have available, but that’s not always the case.   Emotions, not logic, often dictate our decisions, and this is true for corporations as well. This is because they are run by people, not robots, and humans have a natural inclination towards social validation and fear of exclusion.   This fear of being left out leads to a phenomenon where corporations follow their competitors' actions even if they don't make logical sense.   In today’s episode, Dylan dives into the inverted yield curve, layoffs and their implications for the market, corporate capital structures, and the emotional thread that ties it all together.   Show Highlights   [01:22] Why money is emotional [03:06] What is an inverted yield curve? [07:33] How corporate layoffs can signal a recession [09:58] Why interest rates and company debt aren't related [13:25] Why we make emotional decisions [20:37] How social media optimizes validation through dopamine hits   Links and Resources   Fiscally Savage Fiscally Savage Tools Fiscally Savage on Instagram Fiscally Savage on Facebook Fiscally Savage on Twitter