The COVID-19 pandemic brought unprecedented disruption to global economies and capital markets, triggering extreme volatility, uncertainty, and shifts in investor sentiment. As markets crashed and recovered in record time, both retail and institutional investors were forced to reassess their investment strategies, risk tolerance, and market outlook.
This study aims to analyze how the pandemic has altered investment behavior, including asset allocation, risk management approaches, the rise of digital trading platforms, and the increased participation of retail investors. It also explores how external shocks influence strategic shifts—such as the move toward tech stocks, ESG investing, or passive funds—and what lessons can be drawn for future crisis preparedness.
Understanding the impact of the pandemic on investment behavior provides critical insights for policymakers, financial advisors, and market participants. By identifying key behavioral trends and strategic adaptations, this research contributes to the development of more resilient investment models capable of withstanding future crises.