I read an interesting article the other day on the psychological challenges faced by financial professionals in light of the investment market plummet of the past year. Written by a gentleman originally trained as a clinical psychologist who has spent the past 25 years as an investment advisor, he outlines a number of stressors and dynamics facing this group of professionals.

• Loss of faith in the fundamental investment  theories that underlie the models followed by investment professionals which completely failed to predict potential losses of this speed and magnitude.
• Subsequent revelations about the investment industry have also proven unsettling, leaving professionals to doubt the credibility of their own organization.
• Guilt and helplessness about the losses faced by clients
•  Personal losses in investments and retirement plans (with the latter often being in parent company stock).
• Concerns about the future in a profession and industry that suddenly became wholly unpredictable.

Given it is written for an audience of clinical psychologists, the article becomes a bit technical in spots. However, it provides a rather unique perspective on some issues that I honestly had not given much thought and is worth a look if it captures your interest.

Reid Klion