Click Here to Read the Article:
When we perceive a threat, whether it is a saber-toothed tiger in a prehistoric jungle or a 300 point drop in the Dow, our brain floods our bloodstream with hormones such as adrenaline, which sets off a chain of physical responses that gets us ready to fight to defend ourselves, to run away, or to freeze in place until the threat goes away. While this works great in the jungle, it wreaks havoc in our financial lives. This response is the primary reason we engage in self-destructive financial behaviors. When we are scared or excited enough about the economy or our finances, our animal brain takes over, and we do one of three things: we fight, we flee, or we freeze.
