Uploaded May 2026 | Updated September 2026, 1 week ago
Imagine you're cleaning out your grandmother's attic when you notice a floorboard that doesn't quite sit right. You pry it up—and find $10,000 hidden beneath it. It's a startling discovery, but also a window into another way of thinking about money. Your grandmother was likely part of a generation that lived through hard financial times—a depression, unemployment—and saved for a rainy day, even when times became good.
In this episode of Choiceology with Katy Milkman (katymilkman.com/) , we're looking at how major economic events impact us and influence how much risk we're comfortable taking.
Frank Ferrante (eveningwithgroucho.com/) shares the story of legendary comedian Groucho Marx (grouchomarx.com/) and how Groucho fared during and after the stock market crash of 1929.
Next, Katy speaks with Ulrike Malmendier (https://haas.berkeley.edu/faculty/ulrike-malmendier/) , the Cora Jane Flood Professor of Finance at UC Berkeley's Haas School of Business. Ulrike's research reveals how major economic events can reshape our instincts about risk in ways that can last a lifetime, long after the circumstances that caused them have changed.
Choiceology (schwab.com/learn/choiceology) is an original podcast from Charles Schwab.
If you enjoy the show, please leave a rating or review on Apple Podcasts (http://getpodcast.reviews/id/1337886873) .
0:00 Introduction
0:54 Hurricane Katrina's Lasting Mark
3:14 This is Choiceology
3:52 Groucho Marx After the 1929 Stock Market Crash
15:22 Why You Can Lose Out When Remaining Too Risk-Adverse
16:08 How Macroeconomic Experiences Shape Us With Ulrike Malmendier
29:07 Katy Milkman Reflects on Risk Preferences
31:09 Final Thoughts & Next Time
Important Disclosures
The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.
Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.
All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.
The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.
Investing involves risk including loss of principal.
The book How to Change: The Science of Getting from Where You Are to Where You Want to Be is not affiliated with, sponsored by, or endorsed by Charles Schwab & Co., Inc. (CS&Co.). Charles Schwab & Co., Inc. (CS&Co.) has not reviewed the books and makes no representations about its content.
0526-ABDP
Imagine you're cleaning out your grandmother's attic when you notice a floorboard that doesn't quite sit right. You pry it up—and find $10,000 hidden beneath it. It's a startling discovery, but also a window into another way of thinking about money. Your grandmother was likely part of a generation that lived through hard financial times—a depression, unemployment—and saved for a rainy day, even when times became good.
In this episode of Choiceology with Katy Milkman (katymilkman.com/) , we're looking at how major economic events impact us and influence how much risk we're comfortable taking.
Frank Ferrante (eveningwithgroucho.com/) shares the story of legendary comedian Groucho Marx (grouchomarx.com/) and how Groucho fared during and after the stock market crash of 1929.
Next, Katy speaks with Ulrike Malmendier (https://haas.berkeley.edu/faculty/ulrike-malmendier/) , the Cora Jane Flood Professor of Finance at UC Berkeley's Haas School of Business. Ulrike's research reveals how major economic events can reshape our instincts about risk in ways that can last a lifetime, long after the circumstances that caused them have changed.
Choiceology (schwab.com/learn/choiceology) is an original podcast from Charles Schwab.
If you enjoy the show, please leave a rating or review on Apple Podcasts (http://getpodcast.reviews/id/1337886873) .
0:00 Introduction
0:54 Hurricane Katrina's Lasting Mark
3:14 This is Choiceology
3:52 Groucho Marx After the 1929 Stock Market Crash
15:22 Why You Can Lose Out When Remaining Too Risk-Adverse
16:08 How Macroeconomic Experiences Shape Us With Ulrike Malmendier
29:07 Katy Milkman Reflects on Risk Preferences
31:09 Final Thoughts & Next Time
Important Disclosures
The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.
Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.
All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.
The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.
Investing involves risk including loss of principal.
The book How to Change: The Science of Getting from Where You Are to Where You Want to Be is not affiliated with, sponsored by, or endorsed by Charles Schwab & Co., Inc. (CS&Co.). Charles Schwab & Co., Inc. (CS&Co.) has not reviewed the books and makes no representations about its content.
0526-ABDP
