Why a short, sharp climate shock affects your pension more than a slow, looming threat

I’m happy to share that my new piece in The Conversation is now out.

In this article, I discuss why short, sudden climate shocks can have a stronger and more immediate impact on financial markets and pension investments than slow, long-term climate risks. While gradual climate change is often discussed in policy debates, financial markets frequently react far more sharply to abrupt disruptions.

Insights from neurofinance suggest that investors’ brains react more strongly to sudden, visible threats than to slow-moving risks, which helps explain why abrupt climate shocks can trigger sharper market responses.

Understanding this dynamic is important for investors, pension funds, and policymakers thinking about financial resilience in a changing climate.

If you are interested in climate risk, financial markets, or the future of long-term investments, I would be delighted to hear your thoughts.

https://lnkd.in/etPMmWVd

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