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Bestselling author Michael Covel is the host of Trend Following Radio with 9.5+ million listens. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trading -- all passionately explored and debated. Guests include Nobel Prize winners: Robert Aumann, Angus Deaton, Daniel Kahneman, Oliver Hart, Harry Markowitz & Vernon Smith. More guests: Jack Canfield, Howard Marks, James Altucher, Dan Ariely, Jean-Philippe Bouchaud, Kathleen Eisenhardt, Marc Faber, Tim Ferriss, Jason Fried, Gerd Gigerenzer, Larry Hite, Sally Hogshead, Ryan Holiday, Jack Horner, Ewan Kirk, Steven Kotler, Michael Mauboussin, Tucker Max, Barry Ritholtz, Jim Rogers, Jack Schwager, Ed Seykota, Philip Tetlock & Walter Williams.

Praise:

“Your questions were excellent questions. I enjoyed this very much.”

--Vernon Smith, Nobel Prize in Economics

“You’ve surrounded yourself with one of the most advanced group of mentors possible…The people on your podcasts, and people in your life, all are people with strong opinions, all people that make you think and make you grow. You just have some kind of an affinity for people like that, and that’s part of what makes you good at what you do.”

--Ed Seykota

“Michael Covel’s podcast has had over [9.5] million listeners and he’s completed [900+] episodes. He’s probably the most established podcaster on this list—and it shows. Mr. Covel’s podcast is great for those looking for alternative views on the market, those who are tired of hearing the same old stories told on CBNC and other traditional outlets. This is highly recommended if you are looking to expand your mind in investing. Mr. Covel has had some incredible guests, to include multiple Nobel Prize winners and world-famous investors. One of my favorite episodes was when Mr. Covel interviewed Annie Duke, a former professional poker player who has some incredible insights on decision making. Mr. Covel always has me thinking and Annie Duke only amplified my brain-wave activity.”

--Wall Street Journal

Jan 18, 2016

Today on Trend Following Radio Michael Covel talks prediction. He opens with an excerpt from Seth Godin on how he thinks 2016 will unfold. His predictions are based on events that have always happened and will always happen, poking fun at the idea of having a “crystal ball look” into the future.

Michael moves on to market timing and reads an excerpt from The Institutional Investor titled, “Market Timing is Back in the Hunt for Investors.” The article states that market timing can be done correctly if you use a combination of trend following and contrarian views. Michael disagrees with the article stating that you need diversification. You can’t pick one stock and try and predict the top or bottom. Making that kind of bet on one market will bankrupt you. You need a portfolio of diverse markets so your winners can pay for your losses.

Michael then plays three clips from Daniel Kahneman on overconfidence, playing odds, and why we make the choices we do when spending money. Most of what we read in the paper is about overconfidence. People put a lot more weight on negative events then on positive ones. However, many decisions people make are optimistic. Kahneman says it is good that we have a lot of optimism in society. Unfortunately, over confidence and loss aversion seem to work in opposite directions. Most do not know the odds when they take risks. People save and borrow at the same time. Investors tend to view each stock they buy as an individual account rather than part of a bigger picture. These are just a few examples of how society as a whole is generally narrow-minded. Kahneman shows how intricately trading and psychology are linked together throughout the three clips. Michael finishes up the podcast with Ed Seykota singing.

In this episode of Trend Following Radio:

  • Diversification
  • Seth Godin’s 2016 predictions
  • Market timing
  • Understanding psychology in trading
  • Pitfalls of overconfidence