Expert insight
How emotions shape investment decisions
November 05, 2025
In a recent interview with Barron’s, Fiona Greig, global head of investor research and policy in Vanguard’s Investor Strategy Group, shared insights on how emotions can influence investor behavior, particularly during volatile markets. She highlighted several key strategies for staying grounded, including:
Focusing on the factors you can control. Greig emphasized the importance of focusing on manageable factors, such as costs, contributions, and asset allocation, rather than reacting emotionally to market swings. She also advocated seeking professional or digital advice to help maintain discipline.
Planning for retirement readiness. Some unique planning challenges for couples include how wealth is unevenly distributed among retirees as well as the tendency for women to outlive men. Greig stressed the value of having open family conversations about finances, especially before cognitive decline affects decision-making.
Reducing your financial stress. Greig discussed the impact of debt on one’s stress level. She also noted that having at least $2,000 in emergency savings has significant practical and psychological benefits, as it can serve as a buffer from spending shocks and improve overall well-being.
Notes: All investing is subject to risk, including the possible loss of the money you invest.