Nobody wants to lose money, and loss aversion is a prudent part of an investment strategy. But when it goes to extremes, it can hurt retirees more than it helps. When planning for their futures ...
This phenomenon reflects loss aversion, and Spencer mentions that this investing bias is normal. "Loss aversion is natural and affects everyone. People seek pleasure and want to avoid pain," he says.
Two common behaviors at work are loss aversion and herd instinct. Loss aversion is a tendency to feel losses more deeply than gains. The sting of losing 10% in your portfolio's value, for example ...
You’re invited to join Daniel J. Hopkins, Julie and Martin Franklin Presidential Professor in the Political Science Department at the University of Pennsylvania, for an American Politics Speaker ...
Additionally, individuals with higher levels of loss aversion demonstrate a reluctance to invest in supplementary cyber risk ...
Now, in many sectors, the valuations are back to reasonable levels. However, even in the current market, risk-reward is more ...
Psychological biases like loss aversion and commitment bias make it hard to walk away from sunk costs, even when it is clear you should. Focusing on future outcomes, setting clear limits ...