Losses Hurt More Than They Should

Jul 2019

If long-term economic growth and stock investment gains are so common, why are so many people fearful of investing in stocks? In a nutshell, the answer is “loss aversion,” which means that many people react more negatively to an investment decline than they react positively to a comparable gain…That’s loss aversion, and it is alive and well within the minds (and stomachs) of most individuals.