Market Volatility and the Human Mind

Akshay Sakaria
6 min read
Investment
Back to Insights

The stock market is a mechanism for transferring wealth from the impatient to the patient. Warren Buffett's famous quote highlights a fundamental truth: investing is behavioral.

The Flight or Fight Response

When markets crash, our amygdala—the fear center of the brain—activates. We are biologically programmed to flee danger. In the savannah, this saved our lives. In the stock market, it destroys our wealth.

Our advisory approach acts as a circuit breaker for these emotional responses. By having a pre-defined strategy and a psychological anchor, we help you stay the course when others are panicking.

Ready to discuss your strategy?