Investor's Experience in Facing Financial Market Uncertainty: A Subjective Perspective on Investment Decision-Making Amidst Global Economic Dynamics
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Abstract
This study explores investors' subjective experiences in facing financial market volatility amid global economic dynamics. Although previous studies have investigated economic factors affecting investment decisions, little is known about investors' emotional and cognitive experiences during market uncertainty. Addressing this gap, this research examines how uncertainty influences risk perception and investment decision-making. Using a phenomenological approach, in-depth interviews were conducted with 12 individual investors experienced in managing financial portfolios. Thematic analysis revealed three key themes: emotional uncertainty, dynamic risk perception, and coping strategies. Investors experienced anxiety and ambiguity during market turbulence, influenced by global economic news and peer interactions. They employed adaptive strategies such as portfolio diversification and long-term investments to cope with uncertainty. These findings enhance the understanding of subjective experiences in financial decision-making and contribute to behavioral finance theory. Practical implications include providing insights for financial advisors to support investors navigating market volatility.
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