Investors' Chronicle Don’t Panic, Profit: The psychology of better investing
Oct 29, 2025
In this insightful discussion, Dr. Ylva Baeckström, a Senior lecturer in finance at King's Business School, explores the crucial intersection of psychology and investing. She highlights how emotions can cloud financial judgment, especially during market downturns, and discusses gender differences in investment behavior. Dr. Baeckström advocates for better financial education and representation of women in finance, pointing out that women often have more successful portfolios despite facing systemic biases. She also offers practical tips to empower all investors.
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Investing Is An Emotional Battle
- Investing battles your emotional brain because emotions push short-term comfort over long-term gains.
- Val Cipriani says the rational brain must steer investment choices, but emotions make that hard.
Don’t Flee During Market Downturns
- Avoid selling in market downturns because reverting to cash crystallises losses and you may miss recoveries.
- Val Cipriani warns that bear markets can erode confidence and prompt premature selling.
Rallies Trigger FOMO And Bad Timing
- Timing market recoveries is practically impossible and taking money out makes re-entry emotionally hard.
- Val explains rising markets can trigger FOMO and lead investors to chase expensive, hyped assets.