Commonwealth's Birke: Millenials Miss the Human Touch (Audio)

decisions about your money. We'll talk about motivation that healthy financial relationship, behavioral economics, coaching, as well as therapy techniques and how to do real good research called Barks for Me. Joining us from Boston based actually well, the mass based Commonwealth Financial Network. As we continue our special live broadcast today here at Smith and Williski Restaurant right down on the Boston Harbor, Let's get back to the newsroom in

the World headquarters. Charlie Pellett's got a Bloomberg business flash and I thank you very much. Kathleen, thank you him. The Dow just turning negative, down a point right now, as P five hundred index a little change, giving up earlier gains. The SMP five hundred index is higher. It is on track to snap a two day losing streak as rebounding crude prices spurs rally and energy producers, while

corporate earnings help whose financial companies. West Texas Intermediate crude up three point two percent of advancing a dollar seven eight right now on w t I. Brent crude up two point nine percent to affarel, the tenure up four thirty seconds, the yield there one point five four. Michael Purvis is chief global strategist at Weedman Company. He was

interviewed this morning on Bloomberg Surveillance. The real focal point here is is that the role of central banking, the role of the tenure, treasury yield in the equity equation has become more and more dominant. And if there's a reversal in that, right, if that, if that, if that, uh cork explodes the other way and we have a massive sell off and sovereign paper that is going to um the you know, very disruptive to the equity framework

that is supporting a lot of these things. American International Group is on track for its biggest jump in four years after its profit beat estimates. Oil surging more than three percent today. We've got a i G up seven point two percent, up three seven to fifty eight O two right now on a I G healthcare shares falling for a second day, Biogen down more than four percent of it doubts it could be a takeover target. SMP five hundred index off a point to fifty seven. Again

there of point one percent. Goal down eighty beounced thirteen fifty nine, a drop of point six percent. And now let's take a look at the other stories making news. Thank you Charlie from the Bloomberg news room. I'm rainey in a cent cio. There's a report that senior Republican officials are exploring options if Donald Trump quits the presidential race. AC News says those officials believe that Trump is so

unpredictable he might withdraw. A new candidate would have to be selected by one sixty eight members of the Republican National Committee. White House Press Secretary Josh Ernest was asked today about Trump's suggestion that November's presidential election could be rigged. I would just note that it is often acclaim made by people who don't end up winning elections. President Obama is shortening the sentences for two hundred fourteen federal prisoners,

including sixties seven serving life sentences. It's the most commutations in a single day in more than a century. Almost all the prisoners were serving time for non violent drug offenses. Most will be released December one. Dr Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, says the Zeke virus is unlikely to become a national epidemic

here in the US. It's unlikely that we are going to have a broad, widely disseminated outbreak of ZEKEA in the continental the United States, similar to what's happened in Brazil and what is happening in Puerto Rico. At least fifteen cases of zeke infections have been confirmed in an area of Miami. They're believed to have been transmitted locally, and New Jersey has received a half million dollars from the CDC to help treat any ZEKEA infections and pregnant women.

The latest statewide count shows seventies six infected with ZEKA after returning from travel overseas. Half of them are in Bergen and Passaic Counties. Officials say there are no cases of the infection being transmitted by mosquitoes and that the species that carry the virus has not been found in the state. Global News twenty four hours a day, powered by more than journalists and analysts in more than one hundred twenty countries. I'm Rainy and Essensio. This is Bloomberg, Charlie,

and we thank you. And again we've got stocks higher. Tesla reporting after the closing bell up now by eight tenths of one percent, SMP five Index up a point again there of one tenth of one percent. I'm Charlie Palaton. That's a Bloomberg business flash. This is taking stock with them Fox and Kathleen Hayes on Bloomberg Radio for broadcasting Life Today from Smith M. Lensky's near the Boston Harbor in Boston Seaport District. So we can talk to people like our next guest, So, how do you feel about

the market right now? How do you feel about your investments? Do robo advisors make you feel better or worse? Well, here to talk about what makes us think that way and ways we can do with our own thinking. Caulbert He is senior vice president, Technology Strategy and financial behavior Specialist at the Commonwealth Financial Network. He's here in the Boston area. H You may recall hearing him on the show when we've gone to the Commonwealth Financial Annual Meeting.

Always a treat for us on taking stock cold Welcome back to the show, Thanks so much for having me. So your degree and uh, you're actually it's a master's have applied positive psychology from the University of Pennsylvania. Uh, A lot of people don't feel that positive right now, and I honestly think robo advisors is one of the reason, because maybe millennials feel better because I like to just do things on their phones. But I think a lot of people miss the human touch absolutely, and I actually

think millennials missed the human touch too. One of the things that I think is missed in working with millennials is the fact that they do want wise advice. They may want it through an instant message or a text or you know, a video chat or something else where. It's they're not having to actually go to your office, but they do want someone that they can rely on. How do you how do you identify fear based attitudes

and behaviors? Well, I think that there are ways that you can identify it, certainly in person when you see different facial expressions and when you see different body postures, and there are incredible techniques that are just so easy to use. Like whether it's a doctor or financial advised or any professional when they see this type of behavior, One thing that they should know is that there are actually two nervous systems in the body. One system is

that fight and flight nervous system. And when I'm in that state, that's called the sympathetic. When I'm in the sympathetic nervous system, I actually can't think rationally. It's only in the parasympathetic with psychologists nicknamed the rest and digest system that I can think rationally and make wise decisions.

And so when an advised or or a doctor or anyone else who's trying to counsel someone is working with someone that they see is stressed or anxious or fearful or angry, the first step is really moving them from that sympathetic to the parasympathetic. Well, you better have a degree in pasitive psychology to do that, or you better have watched Lie to me that series that ran for a couple of years, which must have been one of

your favorites. Absolutely, and that's based on actual research that was done worldwide to recognize different emotions that actually they have these things called micro expressions where when you practice this, you can actually see these things that the person themselves might not even realize they're experiencing. Absolutely, it's a great show,

all right. Now, let's tie that into how people address their investments, because if you're a robo advisor, if you're doing something where it's just a human to a piece of technology, you can answer questions rather dispassionately and think that you're giving the correct answer. But when the stock market goes the way you didn't expect, that rationality can

go out the window. Such a great point, So psychologists also talk about this notion of hot states and cold states, and hot states are when you're emotional and cold states or when you're rational, and a lot of times when you're filling out paperwork or going through an online wizard, you're in one of those cold states, and so you're rationally thinking about how much risk I can comfortably take.

But then of course the market starts going down and you see your savings dwindling and retirements out the window. You might have to defer for a few years and you hate your job. All of a sudden, that hot state has kicked on, right, and so it pushes you to make act to take action, and a lot of

times that action isn't in your best interest. And that's where whether it's a wise friend or a wise financial advisor, that's where they really come in handy in or and they're going to keep How do I know if I'm got the right financial advisor? I might if I feel good talking to you? Is that a good sign? Or does it show that I'm kind of gullible? And if someone's nice to me it says what I want to hear, You know that I'm not going to get the best advice.

Is there a way to to deal with your feelings which drive a lot of the thought, but which we think is objective, but it's very subjective when it comes to making an important decision like that. That's a great question. There's actually some interesting research out there about doctors and that the doctors that they're that patients like the best actually give some of the worst advice. And so I think you're spot on that it's not just about feeling

good about your financial advisor. It's also that they help you plan for the future. I think there are really three things that a financial advisor can spend their time on trying to predict the future, what's going to happen in the markets, what tax laws are going to change, etcetera. And personally, I think that's impossible. So if you have an advisor that's telling you they're doing that, they're likely

not actually able to do that. They can plan for the future right techniques that already exist, whether it's putting money into a row for the right reasons or whatever else might be, and then they can wisely react with you to the current events. And I think those last two are the things that advisors should focus on. And so if you have an advisor that's doing those last two,

well then you're in the right place. I want to just get your thoughts on the combination of having a live human being assist you or guide you with your financial future, but also employing some of these new robo advising technologies. Give me about ten seconds, All right, great point. I think it's robo versus RoboCop. And everybody wants RoboCop. You want somebody that you can look at in the eyes, but who's using all of the technology that the world's

got available. And so similarly, if your advisor isn't using technology, they're not able to serve you well, thanks very much, good advice, good interesting alright. Cole Burke is the senior vice president Technology Strategy and a financial behavior specialist for Commonwealth Financial Network. They are based in Waltham, Massachusetts. If you're listening to Taking Stock, I'm pim Fox. My co host Kathleen haays. We are broadcasting from Atlantic Wharf in Boston,

home to Smith and Lensky's. This is Bluebird. Donald Trump is against it, Present Obama is for it. Killer Clinton seems to be somewhere in the middle. Find out if the T P P trade deal is good politics and good economics. That's next.