On this episode of Retirease Radio, we’ll reflect on the extremely turbulent stock market of the past 12 months and analyze some of the common ways people cope with volatility and their different emotional responses.
We’ll start with the most common reactions, fear and panic, and discuss how they can influence investment decisions. Then, Victor will help us explore additional emotional reactions like anger, numbness, blissful ignorance, and opportunism.
Specific learning points:
The danger of reacting to a fluctuating portfolio with fear and panic. (2:20)
Where Victor sees anger appears as an emotional mindset to volatile markets. “It tends to be at individuals and leaders rather than circumstances.” (6:15)
Is despondency or numbness a common reaction to market turbulence? (8:30)
Can blissful ignorance be a helpful asset in your emotional toolbox? (10:50)
It’s the opposite of where the discussion began as we analyze people who embrace opportunism even in the face of market upheaval. (13:20)
Retirease Radio is hosted by Victor J. Medina, a Certified Elder Law Attorney (CELA®) and a Certified Financial Planner (CFP™). Founder of Medina Law Group & Palante Wealth Advisors, Victor and his companies are dedicated to empowering people through education about estate planning and their finances.