Exploring the Lived Experience of Market Uncertainty Among Retail Investors

Abstract

Financial markets are complex human systems where cognitive reasoning, emotion, and social interpretation converge to shape investment behavior. Understanding how retail investors experience market uncertainty has become increasingly important, yet prior studies often rely on quantitative approaches that overlook the subjective and emotional dimensions of financial decisions. This study addresses that gap by asking: How do retail investors interpret and make sense of market uncertainty as a lived experience? Using an interpretative phenomenological approach (IPA), the research explores the emotional, cognitive, and existential dimensions of investor behavior during periods of high market volatility. Data were collected through semi-structured interviews with twelve retail investors and analyzed through iterative thematic interpretation using NVivo-assisted hermeneutic analysis. The findings reveal that investors perceive uncertainty as an existential negotiation between fear, trust, and self-reflection, transforming volatility into a process of emotional adaptation and personal growth. These insights highlight that financial behavior is not merely a reaction to market forces but a reflective experience deeply intertwined with personal meaning and social context. By illuminating the lived essence of financial uncertainty, this study expands the theoretical scope of behavioral finance and provides a foundation for developing more human-centered approaches to investor education and market policy.