Meeting Investors' Goals

Go to Course: https://www.coursera.org/learn/meeting-investors-goals

Introduction

**Course Review and Recommendation: Meeting Investors' Goals on Coursera** Navigating the turbulent waters of investment can be a challenging endeavor. Decisions often hinge not just on numbers, but on the psychological factors that influence those decisions. If you're looking to deepen your understanding of how emotions, biases, and ethical considerations can affect investing, the Coursera course "Meeting Investors' Goals" is an excellent choice. This course takes an insightful dive into the intricacies of decision-making, providing a framework for better investment strategies. ### Course Overview "Meeting Investors' Goals" offers participants an exploration into the realm of rational and irrational decision-making. The course is designed to blur the lines between psychology and finance, revealing how human behavior can sway personal investment choices and the broader market landscape. From delving into cognitive biases to understanding market bubbles, this course presents a well-rounded curriculum, opening the door to a multitude of concepts that are crucial for both novice and seasoned investors. ### Syllabus Breakdown 1. **General Introduction and Key Concepts:** The course begins by illustrating the emotional pitfalls that investors often encounter. This week sets the stage for the upcoming content by laying out the foundational concepts of rational decision-making. It provides a grounding moment for learners to assess their understanding of prior lessons and prepares them for the intricate discussions ahead. 2. **How Individuals Make Financial Decisions:** In week two, the course shifts focus to the investor themselves. You'll engage with questions like: What motivates you to participate in the financial markets? This segment dives into cognitive biases and ethical concerns, helping students to identify areas where emotional influence can lead to poor decisions. Understanding these concepts is crucial, as they provide the necessary tools to recognize and mitigate detrimental decision-making processes. 3. **Market Efficiency, Bubbles & Crises:** The third week explores collective investor behavior and its implications on asset prices and market stability. This week's discussions include market efficiency and the conditions under which financial bubbles and crises can emerge. The inclusion of guest expert Prof. Jean-Pierre Danthine adds a rich layer of credibility and real-world insight into these critical themes. 4. **Portfolio Construction and Investment Styles:** Rounding out the course, the final week centers on portfolio construction methodologies. Participants will explore top-down and bottom-up approaches, learning about various investment styles used in industry practice. This segment also features a unique interactive component, allowing learners to experiment with different trading strategies and compare results with peers, reinforcing the practical application of the theories discussed. ### Recommendation "Meeting Investors' Goals" is not just for those who are new to investing; it offers valuable insights for seasoned investors as well. The exploration of cognitive biases and emotional influences provides a much-needed perspective in today’s fast-paced investment environment. By understanding how these factors impact both individual and market-level decisions, participants can refine their strategies and enhance their overall investment acumen. The course is user-friendly, structured effectively, and supported by a wealth of academic knowledge and practical insights. If you want to understand the psychological mechanics behind investment decisions and enhance your skill set in managing assets, this course comes highly recommended. Whether you're looking to fine-tune your investment strategies or simply wish to understand the financial market's underpinnings, "Meeting Investors' Goals" on Coursera is a course worth enrolling in. It equips you with not only theoretical knowledge but also practical tools necessary for navigating the complexities of financial investing.

Syllabus

General Introduction and Key Concepts

In this introductory week, we will start by illustrating how emotions can hinder sensible investment decisions. You will then have the opportunity to check if you master the concepts of the first course that are important for this second course. Finally, we will lay the ground for next week’s content by looking at rational decision making.

The focus of this second week is on you, the investor: what are the reasons you participate in financial markets? How do you make investment decisions? What can go wrong in your decision process and what are the consequences? What can you do about it? To answer these questions, we will talk about cognitive biases, emotions and moral values and their respective link with investment decisions.

In this third week, we will have a look at investors’ behavior as a group. How does it impact asset prices? How do these prices reflect available information? What does it imply for the profitability of some trading strategies? What can go wrong in this price formation process and how can (and did) it cause financial bubbles and crises? This week also features as special guest: Prof. Jean-Pierre Danthine, former vice-chairman of the Swiss National Bank, who will offer insights into some of these issues.

In this final week, we will look at two main portfolio construction methodologies: top-down and bottom-up. We will see how they differ but also how they can be combined. In the second lesson, we will review some important investment styles that are commonly used in the portfolio management industry. In this final lesson, you will also be given the opportunity to experiment with different trading strategies and compare your results with fellow learners.