In extremely volatile markets as we have seen recently, loss aversion markedly increases. This is an important psychologically concept and is encapsulated in the expression “losses loom larger than gains” (Kahneman & Tversky, 1979). It is thought that the pain of losing is psychologically about twice as powerful as the pleasure of gaining.
As an antidote, please find attached 7 Reasons for Investors to be Optimistic.
We hope that this document assists you in these turbulent times.
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