GOLF’S DREADED WATER HAZARD HAS A LESSON FOR INVESTORS

How Does Loss Aversion Affect Investment Decisions?

In this video, we explore the concept of loss aversion. Loss aversion occurs because we're wired to feel twice as bad about a loss as we feel good about a gain. Volatile markets can tempt an investor to forego future opportunities rather than face the possibility of a loss. And that may cause long-term goals to fall by the wayside.

Behavioural Finance for Everyday Investors

We like to think we invest rationally, but the field of behavioural finance has shown there are social, emotional, and even cognitive factors that can affect our investing decisions. By becoming aware of these unconscious tendencies, we have a better chance of meeting our long-term investing goals.