Every once in a while a paper appears in the literature that is both profound and interesting. One such paper was recently published in the journal Biofeedback. Although the topic is off target for most financial planners, the authors do a fantastic job of explaining exactly how people respond both mentally and physically when stressed. Much of the psychophysiological work that is occurring in the Financial Planning Performance Lab is based on this stress response — but in the context of financial decision making. We strongly encourage you to read this paper (especially if you have children or grandchildren in college) and/or if you want to understand how stress can impact behavior.
When Not Saying NO Does Not Mean Yes: Psychophysiological Factors Involved in Date Rape. Biofeedback: Spring 2015, Vol. 43, No. 1, pp. 45-48.