To invest or not to invest—is a question that taps into something deep within us: a desire to take a chance, seize an opportunity, or hedge against the unknown.
The markets, constantly shifting and pulsing with the collective decisions of millions, offer a world of possibility and peril. Yet, few of us ever pause to ask what truly drives the choices we make with our money. What motivates us to buy, sell, and take risks in an unpredictable world?
Economist Odhrain McCarthy, Assistant Professor of Finance at NYU Stern School of Business at NYU Abu Dhabi, may have the answer. A double maths and economics graduate from Trinity College Dublin in Ireland, McCarthy made an unconventional choice when he turned down a job offer from Goldman Sachs to join a fledgling start-up.
It was a decision that, on the surface, seemed like a gamble—one that could either pay off in spades or falter in obscurity. But for McCarthy, it was more than just a financial risk; it was a glimpse into something more profound that would shape his career.
“I've always believed in backing people over ideas,” says McCarthy. “If someone came to me with a great idea, but I didn't believe in them, I wouldn't give them money. The person is more important than the idea.”
McCarthy’s decision turned out to be the right one. The start-up became a worldwide success, and the experience sparked a fascination with the psychology behind financial decisions. Today, McCarthy specializes in behavioral finance, unraveling the unconscious drivers that shape how we manage, invest, and risk our money. But, before all the analysis and investigation, there was a schoolboy in Dublin who simply liked spending his pocket money.
“I’m from a middle-class family, and I was brought up to have a healthy respect for money, but at the same time, I wasn't big into saving or investing,” says McCarthy. “My philosophy was to spend everything I had to make the most out of life at that age. I grew to be a bit more sensitive about finances as I got older, although it took me longer than I anticipated because when I did my PhD, I was totally broke.”
The PhD in question was granted in 2024 in Economics from New York University in the US, following an MSc in Economics from the London School of Economics. Although McCarthy is early in his academic career, he has already published or had multiple papers accepted at top conferences, including notable findings in investor behavior.
“The infrastructure that we use to trade changes and technology changes, but one thing that does not change very quickly is people's psychology because it's been ingrained in us since the dawn of evolution,” he says. “Behavioral finance and applying psychology to asset prices is a very fruitful area, such as confirmation bias, which shows that our previous experiences impact every decision we make.”
Another of McCarthy’s passions is education, especially the importance of equipping the next generation with the skills to manage their finances.
“If I were Minister of Education in Ireland, I’d make personal finance either a mandatory subject or at least an elective in high school,” he says. “The lack of financial education is staggering. How can we expect young people to navigate their finances when they’ve never been given the proper tools?”
Since relocating to Abu Dhabi in August 2024, McCarthy has fully embraced his role at NYUAD, where he looks forward to inspiring students and helping shape the future of financial education in the region. With his unique blend of academic expertise and real-world experience, he is sure to make a lasting impact on how we think about money—both in the classroom and beyond.
