Why Investment Product Design Matters in Volatile Times

Periods of geopolitical uncertainty often test investor confidence and increase market volatility. History, however, shows that volatility is not new nor is the emotional response it triggers.

Feb 2026 - 5 mins read

Behavioural science helps explain why these phases feel so difficult. Daniel Kahneman and Amos Tversky’s work on Prospect Theory shows that people evaluate outcomes as gains and losses relative to a reference point and that the psychological impact of losses is stronger than that of gains; the value function is “steeper for losses than for gains.”

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