Louis Williams: Building client confidence to handle market stress

Positive and negative emotions

clock • 6 min read

Psychology expert Louis Williams discusses emotional resilience in the face of market turmoil and explores how advisers can help build client confidence to ensure they stay invested during times of stress

We know, according to research, that someone's emotional state can strongly influence financial decisions they make. I want to explore how individual differences make investors more susceptible to either positive or negative emotions. In that light, I have been looking closely at an individual's emotional resilience or stability and their subsequent ability or strategy for regulating their emotions during difficult market periods. Mind the behaviour gap We might find that an individual or client has an attitude behaviour gap, whereby they are broadly risk-tolerant, but during diffi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

'Dinosaurs go extinct': Former Progeny CTO warns platforms must evolve or die

'Dinosaurs go extinct': Former Progeny CTO warns platforms must evolve or die

Tim Thompson Rye warns advice platforms must embrace digital transformation

Sahar Nazir
clock 31 January 2025 • 2 min read
Advice firms called to 'create tech team' to fully embrace AI

Advice firms called to 'create tech team' to fully embrace AI

‘A tech team can look at the most important problems your firm needs to solve’

Sahar Nazir
clock 31 January 2025 • 2 min read
Feel Good Friday: CISI gives nearly £250,000 to financial education charities

Feel Good Friday: CISI gives nearly £250,000 to financial education charities

Providing support to Get Set Girls, RedSTART Educate, and Crosslight Advice

Professional Adviser
clock 31 January 2025 • 1 min read