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Steve sits down with Greg Davies, Head of Behavioural Finance at Oxford Risk, for one of the most practically useful conversations the show has had. 

Greg has spent 25 years studying how people actually make financial decisions, and the gap between that and how economists assume they do.

They get into what financial wellbeing really means, why someone can be objectively wealthy and still live in a state of constant financial anxiety, and what advisors and clients can do about it. 

Greg explains the difference between financial liquidity and emotional liquidity, and why most people who sell at the bottom of a market drop do so for emotional reasons, not financial ones.

The episode also covers the obsession with portfolio optimisation and why chasing the perfect allocation often leaves people more exposed, not less. Greg walks through Oxford Risk's 10 financial personality types, the difference between risk tolerance and risk capacity, and why leaning too heavily on one number has caused real harm in financial advice.

Towards the end, Greg shares his own Investor Constitution, the personal rules he follows to take decisions away from himself in high-pressure moments. Including one that stops him from making any investment moves during the week.

If you work with clients, manage your own money, or struggle to stick with long-term plans when things get uncomfortable, this episode is worth your time.