The Psychology of a Crash: Emotional Investing in Unstable Times is a deep exploration into the emotional forces that drive investor behavior, especially during periods of market turbulence. It challenges the myth of the rational investor, revealing how fear, greed, regret, and herd mentality often override logic and financial planning. Using insights from behavioral economics, cognitive psychology, and real-world crises like the 2008 financial meltdown and the COVID-19 market crash, the book exposes how these emotions lead to predictable mistakes-panic-selling, overconfidence, trend-chasing, and avoidance of risk when it's most needed.
Rather than promoting a purely analytical approach to investing, the book advocates for emotional integration-a mindset where self-awareness, mindfulness, and psychological resilience become just as important as diversification and asset allocation. Through chapters focused on cognitive biases, media influence, and personal financial memory, readers learn how to anticipate emotional triggers, design systems that protect them from impulsive reactions, and reframe their relationship with money from fear-based to intentional and values-aligned.
At its core, the book is about empowering individuals-investors, advisors, and everyday people-to build emotional intelligence alongside financial knowledge. It encourages a shift from chasing perfection to practicing discipline, from reacting to reflecting, and from surviving market volatility to thriving through it. By embracing the emotional realities of investing, readers can move toward not just financial success, but financial peace of mind, even in the most uncertain of times.