Trading Insights: Behavioral biases and their impact on investing decisions

This episode features Michelle Baddeley, Professor of Economics at Sydney’s University of Technology (UTS) and author of several books on behavioral economics and finance. She sits down with Eloise Goulder, head of the Data Assets & Alpha Group at J.P. Morgan, to discuss the impact of behavioral biases — such as loss aversion, anchoring and confirmation bias — on investing decisions, the meme stock phenomenon and consumer choices. They also explore how the collective impact of these biases is manifested across the economy and markets. How can these biases be avoided in trading? And will AI serve to mitigate or amplify them in the future?

This episode was recorded on July 31, 2025.

Shownotes:

Michelle Baddeley’s work on these topics:

• "Behavioural Economics: A Very Short Introduction" – Michelle Baddeley
• "Copycats and Contrarians: Why We Follow Others... and When We Don't" – Michelle Baddeley
• "Behavioural Economics and Finance" – Michelle Baddeley

For more information about Michelle and her work go to smarteconomics.org

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