Recent

Paul Reed Smith and Governor Wes Moore: photo credit Stephanie Lemus/PRS Guitars

Paul Reed Smith Day Declared by Maryland Governor Wes Moore

August 22, 2025

Timeless Elegance Meets Modern Performance: Introducing The ADJ Vintage Bar

August 22, 2025

Slingerland Launches Radio King and Studio King Outfits, Plus Spare Parts

August 22, 2025

Seattle Cascades Now a Fully Powered KHS America Drum & Bugle Corps

August 22, 2025
Reid Peterson (Audio-Technica U.S. Executive Director of Sales, Professional Markets); Julie Van Berg (Mavric Incorporated sales associate); Kazuo Matsushita (Audio-Technica Corporation CEO/President); Pete Petty (Mavric Incorporated principal); Manabu Aoki (Audio-Technica U.S. CEO/President); Jeff Beck (Audio-Technica U.S. Regional Sales Manager, System Solutions); and David Barrett, Jerry Silhavy and John Herr (Mavric Incorporated sales associates). Photo credit: Corey Walthall, Clyne Media

Audio-Technica honors Mavric, Inc. with its President’s Award

August 22, 2025

Solid State Logic Appoints Mark Skipper to National Sales Manager, Eastern U.S., for Broadcast & Live Audio Production Systems

August 22, 2025

Boston Crusaders Win 1st-Ever DCI Gold Medal Playing Pearl/Adams

August 22, 2025

Rock & Roll Hall of Famer Chad Smith Launches Foundation to Champion Music Education, Access and Opportunity for Aspiring Artists

August 22, 2025
Friday, August 22, 2025
  • Contact
MMR Magazine
  • Subscribe Now!
    • Subscribe Now!
  • Advertise
  • Email Press Releases!
  • Current Issue
    • Past Issues
  • Newsroom
    • News
    • MMR Global
    • Supplier Scene
    • Upfront
    • People
  • Awards
    • Dealers’ Choice Awards Ballot 2024
    • Don Johnson Award Winners Archive
  • Directory
  • Get Support!
No Result
View All Result
  • Subscribe Now!
    • Subscribe Now!
  • Advertise
  • Email Press Releases!
  • Current Issue
    • Past Issues
  • Newsroom
    • News
    • MMR Global
    • Supplier Scene
    • Upfront
    • People
  • Awards
    • Dealers’ Choice Awards Ballot 2024
    • Don Johnson Award Winners Archive
  • Directory
  • Get Support!
No Result
View All Result
MMR Magazine
No Result
View All Result

Perception vs. Reality

Christian Wissmuller by Christian Wissmuller
May 16, 2020
in The Sound of Money
0
938
SHARES
2.3k
VIEWS
Share on Facebook
ADVERTISEMENT

Here are this week’s major developments related to COVID-19:
(Source: City National Rochdale)

  • 31 states in phase 1 or 2 of reopening – manageable issues so far
  • Job losses still high, signs of bottoming out by June
  • 80% of states are at or near adequate testing
  • Generally, U.S. stocks are down about 11%, year-to-date

In 2002, Daniel Kahneman was awarded the Nobel Prize in Economic Sciences for his work focusing on the areas of judgment and decision-making under uncertainty.
If we can describe our current psychological state in one word, I’m pretty confident few would object to using the word, “uncertainty.”

ADVERTISEMENT

 

In 1981, Kahneman and Tversky published “The Framing of Decisions and the Psychology of Choice.”

Here are the scenarios that were imagined.

 

  • Imagine there was an outbreak of a new disease that will kill 600 people without any action taken. (He could have never imagined COVID-19)
  • You’ll need to choose a course of action from these two programs.

 

 

 

 

 

 

 

Now imagine the same scenario:

  • An outbreak of a new disease that will kill 600 people without any action taken.
  • You’ll need to choose a course of action from these two programs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Framing Effect

  • More than 70% chose Program A and Program D
  • Keep in mind they are all the same.
    Program A = Program C, Program B = Program D
  • 600 people are at risk of the disease

People choose certainty when the problem is framed positively, uncertainty when the problem is framed negatively.

Seeing through the headlines by focusing on the data

  • Headlines tend to present information negatively

Recent headline:

“When New York is removed from the data, cases are increasing around the country.”

Increase is largely due to increased testing, not necessarily increased spread

How can we make sense of all these numbers?

 

  • Key is understanding whether or not we have a handle on the outbreak
  • Positive test rate measures both the rate of spread and the level of testing

 

By this measure, the U.S. outside the New York tri-state area is mostly in good shape.

 

 

 

 

 

 

Lessons Learned 

The way information is framed impacts how we cognitively process it.
Making sound financial decisions requires a pause during which data is first examined, before fear and a heightened emotional state takes our mind hostage.

Jaimie Blackman – a former music educator & retailer– is a financial advisor, succession planner, and certified business advisor. Blackman is a frequent speaker at NAMM’s Idea Center. He writes “The Sound of Money,” a monthly column for MMR. Visit, bhwealth.com to subscribe to newsletter and webcasts. Registered representative, First Allied Securities, Inc. Member FINRA/SIPC.

Previous Post

Danley’s ‘Skinny Big Horn’ Revitalizes Audio at Pioneer Memorial Church

Next Post

Fender Shares New Acoustasonic Strat Video with Walters

Related Posts

Magazine Archive

The Score is Not the Music

June 6, 2022
The Sound of Money

Orchestrating Your Own Disney Ending

June 28, 2021
The Sound of Money

From FOMO to GROMO

June 2, 2021
The Sound of Money

Mirror, Mirror – How Valuable is my Business?

April 30, 2021
The Sound of Money

Managing the Dissonance of Financial Stress

March 31, 2021
The Sound of Money

Leadership Founded in Love

March 2, 2021
Next Post

Fender Shares New Acoustasonic Strat Video with Walters

Please login to join discussion
  • Trending
  • Comments
  • Latest

Furch Guitars Introduces Pioneer Series: All-Solid-Wood, Travel-Friendly Short-Scale Guitars

July 21, 2025

Jessica Tropea Joins Neutrik Americas as Customer Solutions Engineer

August 15, 2025

NAMM’s Top 100 Dealer Awards Rebranded as The NAMM Retail Awards

July 21, 2025

Music Sales swoops for Carisch

April 8, 2015
Paul Reed Smith and Governor Wes Moore: photo credit Stephanie Lemus/PRS Guitars

Paul Reed Smith Day Declared by Maryland Governor Wes Moore

Timeless Elegance Meets Modern Performance: Introducing The ADJ Vintage Bar

Slingerland Launches Radio King and Studio King Outfits, Plus Spare Parts

Seattle Cascades Now a Fully Powered KHS America Drum & Bugle Corps

Paul Reed Smith and Governor Wes Moore: photo credit Stephanie Lemus/PRS Guitars

Paul Reed Smith Day Declared by Maryland Governor Wes Moore

August 22, 2025

Timeless Elegance Meets Modern Performance: Introducing The ADJ Vintage Bar

August 22, 2025

Slingerland Launches Radio King and Studio King Outfits, Plus Spare Parts

August 22, 2025

Seattle Cascades Now a Fully Powered KHS America Drum & Bugle Corps

August 22, 2025
ADVERTISEMENT
The Latest News and Gear in Your Inbox - Sign Up Today!
  • August 2025

    Articles | Digital Issue
  • July 2025

    Articles | Digital Issue
  • June 2025

    Articles | Digital Issue
  • May 2025

    Articles | Digital Issue
  • April 2025

    Articles | Digital Issue
© 2005 - 2025 artistpro, LLC
7012 City Center Way, Suite 207
Fairview, Tennessee 37062
(800) 682-8114

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Subscribe Now!
    • Subscribe Now!
  • Advertise
  • Email Press Releases!
  • Current Issue
    • Past Issues
  • Newsroom
    • News
    • MMR Global
    • Supplier Scene
    • Upfront
    • People
  • Awards
    • Dealers’ Choice Awards Ballot 2024
    • Don Johnson Award Winners Archive
  • Directory
  • Get Support!

© 2005 – 2024 artistpro, LLC 7012 City Center Way, Suite 207 Fairview, Tennessee 37062 (800) 682-8114

This is Modal Title

Click Me
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?