Maria Gonzalez Blog
Mindful Leadership
Stress Impacts Everything…Including the Markets!
Anyone who has experienced stress in their lives (and who hasn’t?) knows the impact it can have on the body and the mind. At minimum, we know that cortisol levels increase and with that, a general state of uneasiness and unwellness. We also know that if stress is sustained for long periods of time, it impacts overall health, as well as, performance. And as a leader, you know that your stress can impact your team and the entire organization.
What we didn’t know, until now, is the impact that traders’ stress levels have on the financial markets. A recent article by Reuters UK describes a study of City of London traders and of the effect of cortisol on behaviour. The research was led by Dr John Coates, a former Goldman Sachs and Deutsche Bank derivatives trader, turned neuroscientist. What they found is that high levels of the stress level cortisol can induce “risk aversion”.
As the article states, “the findings, turns on its head the assumption that traders’ appetite for risk-taking remains constant throughout market up and downs, and suggests stress could in fact make them more cautious, exacerbating financial crises, just at a time when risk-taking is needed to support crashing markets.”
According to Coates, now a researcher in neuroscience and finance at Cambridge University, “Any trader knows that their body is taken on a roller coaster ride by the markets. What we haven’t known until this study was that these physiological changes – the sub-clinical levels of stress of which we are only dimly aware – are actually altering our ability to take risks.”
I have written at length in both previous blogs, as well as, in Mindful Leadership, about the impact of physical sensations in the body, that drive behaviour. I can’t overemphasize the importance of being aware moment by moment of these sensations. By being aware of the sensations you are more likely to know when you are becoming stressed. These can become early warning signals that can help you put a strategy in play to mitigate unwanted behaviour that can spiral. And if you’ve missed the cues, it is not too late! Awareness at any point will enable you to catch yourself and get back on course.
One of the easiest strategies to reduce and manage stress is to work with body relaxation and relaxing breath meditation. Practicing this regularly will cause you to become increasingly aware of your body and any tension you may hold, and thereby enable you to release the tension. This will bring about physiological benefits as well as, enable you to be a more effective. I have created a Mindful Leadership App for smartphones, androids and tablets that can help you effectively reduce and manage stress with some simple Mindfulness techniques.
Read the complete Reuters UK article
This entry was posted in Mindful Meditation. Bookmark the permalink.-
Upcoming Mindfulness Training Programs
Queen’s Executive Education – Strategic Mindfulness & Resilience
Date: February 6th and 7th, 2017
October 17th and 18th, 2017Location: Smith School of Business – Toronto Facility – 200 Front Street West
Learn More > Register Now >Mindful Leadership Coaching Program
Date: Ongoing
Location: 2 St. Clair Avenue East
Learn More > Register Now >
Suite 800
Toronto, Ontario CanadaUniversity of Toronto – Mindful Leadership and Governance
Date: Mindful Leadership Fundamentals – March 1st and 2nd, 2017
Mastering Mindful Leadership – April 5th and 6th, 2017
Mindful Governance – May 3rd and 4th, 2017Location: University of Toronto
Learn More > Register Now >Advanced Mindfulness Course
Date: Monthly September – November and January – May
Day-Long Retreats – December and JuneLocation: 2 St. Clair Avenue East
Learn More > Register Now >
Suite 800
Toronto, Ontario CanadaMindfulness Coaching Program for Health and Wellness
Date: Ongoing
Location: 2 St. Clair Avenue East
Learn More > Register Now >
Suite 800
Toronto, Ontario CanadaCustom Corporate Mindfulness Leadership Programs
Date: Ongoing
Location: TBD
Learn More > Register Now > -
Subscribe to our Feed