How do individuals investors tend to react to a financial crisis?

Individual investors often react to a financial crisis with heightened anxiety and uncertainty, leading to increased volatility in their investment decisions. Many may panic and sell off assets to mitigate losses, while others could adopt a wait-and-see approach, holding cash instead of investing. Some may seek to capitalize on perceived bargains in the market, though this can be risky without proper research. Overall, emotional responses can significantly impact their long-term investment strategies and portfolio performance.