One of the more well-known behavioral biases is loss aversion. Loss aversion is a common trait people display where they feel the pain of losing money much more acutely than the pleasure from gains.
Loss aversion is a bias to feel the pain of losses more strongly than the pleasure of gains - and this can impact how you invest for your retirement. Nobel Prize-winning economist Daniel Kahneman’s ...
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What Does Loss Aversion Mean?
Loss aversion is a psychological phenomenon that refers to the tendency of people to strongly prefer avoiding losses rather than acquiring equivalent gains. In other words, the pain of losing ...
As financial advisors, we have two paths we can take. The easy path is to create a portfolio that’s simple for clients to understand and emotionally accept, even if it’s not the most tax-efficient.
Can your brain influence your investment accounts? The study of behavioral economics would suggest that it could. Behavioral economics is a psychological study of how cognitive and emotional factors ...
We don’t like to lose things that we own. We tend to become extremely attracted to objects in our possession, and feel anxious to give them up. Ironically, the more we have, the more vulnerable we are ...
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