How to invest during uncertain times

04/21/25 • 31 min

Episode Overview

In this episode, I tackle the timely topic of investing during market volatility, particularly relevant as stock markets respond to President Trump's recent tariff announcements. For many investors, these uncertain times can trigger anxiety and fear, but I explain why volatility is actually normal, cyclical, and can present excellent investment opportunities for those with the right knowledge.

Key Highlights Understanding Market Sentiment

Warren Buffett's famous advice: "Be fearful when others are greedy and greedy when others are fearful"
The Fear and Greed Index as a valuable tool for measuring collective investor emotions
How buying during periods of extreme fear has consistently produced strong returns over time
The counterintuitive nature of successful investing - why it feels uncomfortable to go against the crowd

The Psychology of Market Cycles

Market sentiment follows predictable emotional patterns:
- Disbelief → Hope → Belief → Thrill/Euphoria
- Complacency → Anxiety/Denial → Panic → Depression
- Then back to Disbelief as the cycle restarts
Understanding where you personally get caught in this emotional cycle
Common behavioural biases that affect investment decisions:
- Loss aversion (feeling losses twice as strongly as gains)
- FOMO (fear of missing out)
- The endowment effect (overvaluing what we already own)

Recognising Your Own Emotions and Behaviours

Self-awareness as the most underrated investment skill
Research shows individual investors underperform markets by 2-4% annually due to emotional decisions
The value of keeping an investment journal to document feelings during market cycles
Understanding your risk tolerance and personal biases

Understanding Market Cycles

The four classic phases of economic cycles: Expansion, Peak, Contraction, Recovery
Different market sectors that typically outperform in each phase:
- Expansion: Technology, consumer-based stocks
- Peak: Financial sectors, industrial stocks
- Contraction: Healthcare, consumer staples, utilities
- Recovery: Materials, energy sectors
How to adjust portfolio weightings based on cycle phases

The Power of Correlation in Building Resilience

Correlation measures how different assets move in relation to each other
Understanding correlation coefficients: from -1 (opposite movement) to +1 (same direction)
Why true diversification requires assets with low correlation to each other
The 2022 example of both bonds and equities declining simultaneously
Building a portfolio that can weather different market conditions

Final Thought

Successful investing is about time in the market, not timing the market. Research shows that missing just the 10 best days in the stock market can cut returns in half over decades. While market volatility might make many investors fearful, those prepared with the right strategies can use uncertain times as opportunities for growth.

Chapters

00:00 Investing in Uncertain Times

04:49 Understanding Market Sentiment

09:08 The Psychology of Market Cycles

16:20 Recognizing Personal Emotions in Investing

18:11 Understanding Market Cycles

21:33 The Importance of Correlation in Investments

25:52 Key Strategies for Successful Investing

Resources:

Get my FREE book 'It's Not About The Money'

Take the Money StoryTypes® Quiz

Come to our Wealth Awakening Retreat

Episode Overview

Key Highlights Understanding Market Sentiment

Warren Buffett's famous advice: "Be fearful when others are greedy and greedy when others are fearful"
The Fear and Greed Index as a valuable tool for measuring collective investor emotions
How buying during periods of extreme fear has consistently produced strong returns over time
The counterintuitive nature of successful investing - why it feels uncomfortable to go against the crowd

The Psychology of Market Cycles

Market sentiment follows predictable emotional patterns:
- Disbelief → Hope → Belief → Thrill/Euphoria
- Complacency → Anxiety/Denial → Panic → Depression
- Then back to Disbelief as the cycle restarts
Understanding where you personally get caught in this emotional cycle
Common behavioural biases that affect investment decisions:
- Loss aversion (feeling losses twice as strongly as gains)
- FOMO (fear of missing out)
- The endowment effect (overvaluing what we already own)

Recognising Your Own Emotions and Behaviours

Self-awareness as the most underrated investment skill
Research shows individual investors underperform markets by 2-4% annually due to emotional decisions
The value of keeping an investment journal to document feelings during market cycles
Understanding your risk tolerance and personal biases

Understanding Market Cycles

The four classic phases of economic cycles: Expansion, Peak, Contraction, Recovery
Different market sectors that typically outperform in each phase:
- Expansion: Technology, consumer-based stocks
- Peak: Financial sectors, industrial stocks
- Contraction: Healthcare, consumer staples, utilities
- Recovery: Materials, energy sectors
How to adjust portfolio weightings based on cycle phases

The Power of Correlation in Building Resilience

Correlation measures how different assets move in relation to each other
Understanding correlation coefficients: from -1 (opposite movement) to +1 (same direction)
Why true diversification requires assets with low correlation to each other
The 2022 example of both bonds and equities declining simultaneously
Building a portfolio that can weather different market conditions

Final Thought

Chapters

00:00 Investing in Uncertain Times

04:49 Understanding Market Sentiment

09:08 The Psychology of Market Cycles

16:20 Recognizing Personal Emotions in Investing

18:11 Understanding Market Cycles

21:33 The Importance of Correlation in Investments

25:52 Key Strategies for Successful Investing

Resources:

Get my FREE book 'It's Not About The Money'

Take the Money StoryTypes® Quiz

Come to our Wealth Awakening Retreat

Previous Episode

How to plan your next quarter for more financial success

Episode Overview

In this episode, I explore the art of quarterly financial planning as we approach the start of a new quarter in 2025. Whether you've never created a financial plan before, have ambitious money goals gathering dust, or have had to pivot due to unexpected circumstances, this episode offers practical guidance on creating a financial roadmap that actually works.

Key Highlights Why Most Financial Plans Fail

Living by default rather than design - executing other people's priorities
Spending too much time responding to others' needs versus pursuing personal financial goals
Getting caught in the "urgency trap" and constantly firefighting
True financial wealth is created when focusing on important but non-urgent tasks

The Eisenhower Time Matrix for Financial Planning

Four quadrants based on urgency and importance
Most people spend their days trapped in urgent quadrants (important and unimportant)
Financial growth happens in the "important but not urgent" quadrant, including:
- Regular review of spending patterns
- Learning about investing
- Building strategic relationships
- Developing new income streams or offers
The value of regular money dates: 20 minutes a week on one financial area

Making Financial Goals Motivating

Don't just set empty money targets (e.g., "make £10,000")
Connect financial goals to deeper meaning and purpose
Ask: "What will this allow me to experience? How will my life change?"
Identify the feeling you're seeking: security, freedom, peace, expansion
Research shows we're more motivated by purpose than numbers

The Danger of Over-Planning

Setting too many financial goals leads to overwhelm and failure
The fear of spaciousness: filling calendars because emptiness feels unsafe
Follow the "one-three-five" rule:
- One major financial goal
- Three supporting goals
- Five routine habits to maintain progress
Quality over quantity applies to financial goals
Over-planning often stems from scarcity thinking

Planning According to Seasons

Different quarters require different approaches to financial planning
Aligning financial activities with natural energy cycles:
- Spring: Planting new seeds, starting projects, learning money skills
- Summer: Execution and expansion (with family time consideration)
- Autumn: Harvesting, reviewing, optimising systems and expenses
- Winter: Resting, reflecting, preparing for next year's growth
Consider personal cycles: menstrual cycles, numerology cycles, energy patterns
The importance of recognising which season you're in with your financial journey

Final Thought

Financial success comes from intentional planning aligned with values and natural energy cycles. Start with the next 90 days rather than trying to plan the entire year at once and allow flexibility for changes and adjustments along the way.

Chapters

00:00 Embracing New Beginnings: Financial Planning for the Quarter Ahead

02:45 Identifying Personal Financial Goals: Beyond the Numbers

06:03 The Eisenhower Matrix: Prioritizing Financial Tasks

08:55 Transforming Planning into a Joyful Experience

12:14 Avoiding Over-Planning: The Power of Focus

15:02 Understanding Seasonal Financial Planning

17:54 Creating a Flexible Financial Framework

20:46 Conclusion: Intentional Planning for Financial Success

Resources:

Get my FREE book 'It's Not About The Money'

Take the Money StoryTypes® Quiz

Come to our Wealth Awakening Retreat

Become a Certified Financial Coach

Next Episode

A Personal Update - My Next Evolution as a Money Visionary

In this deeply personal episode, I share reflections on my journey over the past 18 months and how my vision for my work is evolving. Looking back over nearly a decade of work in the psychology of money, I explain how this next phase represents not an abandonment of my previous mission, but an expansion to create greater impact.

Key Highlights My Journey So Far

Starting in financial services at age 18 and the shame of knowing all the practical money advice but not following it myself
The transformative power of discovering money psychology and how it changed my relationship with money
From weekly blogs to Facebook groups to launching the "In Her Financial Shoes" podcast five years ago
Mentoring financial advisors individually, then in groups, and eventually creating a certification programme during lockdown
The expansion beyond financial professionals to coaches and therapists who encounter money issues with their clients

Personal Evolution and Healing

Receiving an ADHD diagnosis 18 months ago that prompted deep internal work
The importance of "hiding in a good way" - turning inward to find visibility within myself
Working with numerology, life paths and gene keys to understand my deeper purpose
Being a mother to two boys and how this has expanded my perspective beyond women's financial empowerment

The Expanded Vision: Becoming a Global Money Visionary

Moving from helping women heal their relationship with money to becoming a leading authority in the financial space for all
Recognising how money itself is evolving - from digital currencies to decentralisation
The realisation that financial trauma affects everyone, not just women
Building a "bigger boat" rather than abandoning ship - expanding while maintaining emotional depth

Practical Changes Coming

Closing the Wealthy Woman School in September 2025 to create space for growing the Financial Coach Certification
Continuing certain programmes like "The Energy of Selling" for business owners
Building more relationships and collaborations with others in the financial space
Introducing more guest experts on the podcast, including some who might be considered competitors
Focusing on equipping others to help their clients with money beliefs

The Money Narratives Clearing Framework

Opening up this methodology to all professionals who want to incorporate emotional intelligence into money conversations
Recognising that while I can only reach so many people directly, I can equip others to create wider impact
New resources coming for existing coaches, including white-labelling opportunities for the Money Story Types tool

Final Thought

Evolution isn't without challenges. The moments when we feel we're stepping back are often when we're gathering strength to move forward. True evolution isn't about who you leave behind, but who you're finally ready to include. The work of transforming our relationship with money is both deeply personal and profoundly collective, requiring courage, vulnerability, and a willingness to examine generational stories.

Chapters

00:00 Catherine's Personal Journey and Evolution

06:05 Expanding Beyond Financial Services

12:53 The Heart of the Work Remains

18:34 Embracing Change and Visioning

24:10 Moving Beyond Healing to Empowerment

Resources:

Get my FREE book 'It's Not About The Money'

Take the Money StoryTypes® Quiz

Come to our Wealth Awakening Retreat

Become a Certified Financial Coach