Do you remember the toilet paper craze of 2020? Or the gasoline hysteria of 2021? Perhaps you were one of those people who heard about the potential shortage and immediately went to get yours. If so, this was actually a relatively normal response - and it's called "Panic Buying". 

A recent study from the Journal of Experimental Psychology looked at the behavior triggers that lead to a buying frenzy. What they found is that uncertainty plays a major role in our purchase decisions; and not just uncertainty, but more specifically, unexpected uncertainty. 

As chaotic as these situations were, it's normal human behavior. It's how we're wired to respond in unexpected uncertainty. And people often do the very same thing with investing. They see what everyone else is doing, they get scared, and make an impulsive decision out of fear, which doesn't end well 9 times out of 10. 

However, there is a way we can better manage this, so we're not simply slaves to our impulses

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This podcast is not intended to provide financial or tax advice. The information, services and other content provided on and through this podcast, including information that may be provided in the show notes (directly or via linking to third-party sites), are provided for informational purposes only. Please consult with your tax, investment or other financial professional regarding your personal financial situation.