Why do intelligent people still make poor financial decisions during uncertain times? In this Fix It Friday episode of the Crazy Wealthy Podcast, Jonathan Blau explores the behavioral psychology behind investing mistakes and why fear—not lack of intelligence—is often the real problem. Jonathan breaks down how investors react differently to gains and losses, why uncertainty amplifies emotional decision-making, and how structure and preparation can help investors stay disciplined during market volatility. This episode is a powerful reminder that successful investing is less about prediction and more about managing human behavior.
What You’ll Learn:
Why smart people often make emotional financial decisions
How fear changes investor behavior under uncertainty
The psychology behind loss aversion
Why investors become risk-averse when winning and risk-seeking when losing
How behavioral mistakes damage long-term wealth
Want to make smarter financial decisions grounded in clarity and confidence? Subscribe and share the Crazy Wealthy Podcast. To learn more about Fusion Family Wealth’s evidence-based investment strategies, visitwww.fusionfamilywealth.com and request our current disclosure brochure.
Key Timestamps:
00:00 – Introduction to behavioral investing mistakes
02:30 – What behavioral research reveals about investors
03:50 – Why investors take bigger risks after losses
04:15 – How markets test behavior, not just portfolios
05:00 – Why liquidity matters during market declines
05:20 – Historical market declines investors should expect
06:00 – Closing thoughts on fear and structure
Key Takeaways:
Emotional behavior—not intelligence—is often the biggest investing challenge
Losses feel far more painful than gains feel rewarding
Investors tend to avoid risk when ahead and seek risk when behind
Fear and uncertainty can override rational decision-making
Most investing mistakes happen during emotional moments
👤 About the Host:
Jonathan Blau is the President and CEO of Fusion Family Wealth, a fiduciary wealth management firm he founded in 2013 to help families achieve clarity, confidence, and purpose with their money. With a deep focus on behavioral finance, Jonathan teaches investors how to recognize emotional biases and make evidence-based decisions that support long-term success. A sought-after speaker in wealth management, Jonathan previously held senior roles in tax and estate planning at Arthur Andersen. He holds a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island, Jonathan is active in the local business community, supports organizations such as the Middle Market Alliance and Sunrise Day Camp, and enjoys boating with his family.
A copy of Fusion's current written disclosure brochure discussing our advisory [00:00:15] services and fees is available upon request or at www.fusionfamilywealth.com.
han Blau: Welcome to another [:
So there's a reason for this, [00:00:40] and it has nothing to do with whether or not they're smart. It has something to do with something [00:00:45] much more dangerous, which is our behaviors. [00:00:50]
ast with your host, Jonathan [:
He'll chat with professionals from the advice world, entrepreneurs, executives, and [00:01:15] more to share fresh perspectives on making sound decisions that maximize your [00:01:20] wealth. And now, here's your host. [00:01:25]
s good investors to make bad [:
And when I say uncertain, [00:01:35] uncertainty is always present. What I mean is to say is perceived uncertainty. The [00:01:40] greater the perceived uncertainty, the worse our decision-making with financial, uh, [00:01:45] issues tends to be. So the difference between how we think we make [00:01:50] decisions and how we actually behave when money feels at risk.
Here's a simple [:
In a [00:02:25] spreadsheet, that may be true. In real life, not true at all. Here's how we actually [00:02:30] decide. Here's what behavioral research shows and what I see constantly with real [00:02:35] people and real money. Losses hurt much more than gains feel good. In fact, [00:02:40] what, what research has proven is we feel the pain of a loss two and a [00:02:45] half times greater than we feel the pleasure of an equivalent gain is pleasurable.
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I don't want to lose my gains. I should [00:03:15] protect what I've made." So they become more cautious and even long-term [00:03:20] logic says staying invested makes sense. That's risk-averse behavior while winning. [00:03:25] When investors are down, we flip the situation. Their portfolio is below where it [00:03:30] was. That loss feels personal because they didn't do anything to prevent it, [00:03:35] and many people will now say, "I need to get this back.
I'll take a shot if it [:
And simply what's changed is the emotional starting point. [00:04:10] That's not someone being stupid, that's being human. So why does this matter in markets? [00:04:15] Markets don't just test portfolios, they test behaviors. There's no clear timelines. [00:04:20] There's constant noise, and uncertainty never gives us closure. So [00:04:25] most investing mistakes don't come from bad analysis.
om bad moments. Moments when [:
So what's [00:04:50] the fix? Fix is let's plan for humans, not for robots. At Fusion, we [00:04:55] don't build plans that assume perfect decisions. We assume people will feel fear, stress, [00:05:00] and doubt because they're human. So we build structure, cash, and liquidity [00:05:05] for three years of spending in retirement, so investors aren't forced to sell their [00:05:10] equities or stocks during temporary declines, and they can switch their spending to that [00:05:15] liquidity position.
emotional reactions. We, we [:
That's a rule, so we don't [00:05:40] have to react to the emotional stress during the decline. And then long-term [00:05:45] strategies don't require perfect timing. The goal isn't to remove uncertainty. That's [00:05:50] impossible. The goal is to make uncertainty survivable, so one bad emotional [00:05:55] decision doesn't undo decades of smart planning.
ht, I want to say that smart [:
In the meantime, all of our podcasts, Crazy Wealthy and Fix It Friday, are available on the [00:06:25] crazywealthypodcast.com website, as well as Fusion Family Wealth and all your [00:06:30] favorite podcast venues.
Voicover: Thank you for [:
Until then, stay crazy wealthy. [00:06:50]
mer: The previous podcast by [:
Different types of investments involve [00:07:05] varying degrees of risk, and it should not be assumed that future performance of any specific investment or investment strategy or any non-investment related or planning [00:07:10] services, discussion, or content will be profitable, be suitable for your portfolio or individual situation.
estment advisor registration [:
No portion of the video content should be construed by a client or prospective client as a guarantee that he or she will [00:07:30] experience a certain level of results if Fusion is engaged or continues to be engaged to provide investment advisory services. A copy of Fusion's [00:07:35] current written disclosure brochure discussing our advisory services and fees is available upon request or at [00:07:40] www.fusionfamilywealth.com
