Audio Resource: What Role Does Fear Play In Investing?

From Marketplace (5 minute interview):

Here are the questions covered in this interview with a psychology professor:

  • What happens in brain when fear hits (e.g., when stock market drops 1,000 points as it did last week)?
  • How do different people process the fear stimuli?
  • Is our fear response innate or can we teach people to develop a higher tolerance for pain?
  • How does fear impact our decision-making?

You might ask students where they fit on the “fight or flight response” continuum and how they might react to a 1,000 drop in the stock market.