[Best of 2025 Repost] Episode 174 The Psychology of Investing Understanding Market Reactions

About this episode

As we close out 2025 and head into the New Year, we’re sharing one final Best of episode before returning with new conversations in January. This week’s replay is Alex’s top pick from the year, a conversation that stood out for its relevance, insight, and the questions it generated from listeners.

We’ll be back soon with brand new episodes in 2026. Until then, Happy New Year, and thank you for being part of the Retire With Style community!

 

Repost from Episode 174

In this episode of Retire with Style, Wade Pfau and Alex Murguia sit down with Dr. Daniel Crosby, a leading voice in behavioral finance, to unpack the psychological side of investing in today’s volatile markets. Together, they examine how market swings and media noise shape investor behavior—and why having a thoughtful media diet and disciplined decision-making framework is more important than ever. This conversation lays the foundation for next week’s episode, where the discussion will shift toward deeper questions of wealth and meaning. Listen now to learn more!

Takeaways

• Market volatility can trigger anxiety—even among professionals.
• It’s normal to feel fear during downturns, but those emotions don’t have to drive your decisions.
• Limiting exposure to financial news may help you stay focused and make better choices.
• Recognizing the incentives behind financial media can help you consume it more critically.
• More information isn’t always better—clarity often comes from less, not more.
• Patience matters. Reminding yourself that “this too shall pass” can be grounding.
• Uncertainty often causes more stress than bad news itself.
• Taking time to reflect before acting can lead to better financial outcomes.
• We tend to give others better advice than we give ourselves—pause and consider what you’d tell a friend.
• Automation and structured plans are powerful tools to reduce emotional decision-making.

Chapters

00:00 Introduction to Behavioral Finance and Market Volatility
02:56 Understanding Market Reactions and Investor Psychology
06:01 The Impact of Media on Financial Decision Making
08:47 Navigating Uncertainty in Financial Markets
12:05 The Importance of Patience and Discipline in Investing
15:03 Frameworks for Better Financial Decision Making
17:55 Conclusion and Transition to The Soul of Wealth

Links

Click here to watch this episode on YouTube: https://youtu.be/6pMFE_-u0YM

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”