Regret aversion can hinder portfolio management from "summary" of Your Money and Your Brain by Jason Zweig
Regret aversion is a common emotional bias that can have a significant impact on the way people manage their investment portfolios. When investors are haunted by the fear of regretting their decisions, they often become paralyzed and unable to make necessary changes to their investments. This fear of making the wrong decision can lead to inaction, even when it is clear that adjustments need to be made. The fear of regret can also cause investors to hold on to losing investments for longer than they should. They may convince themselves that the investment will turn around eventually...Similar Posts
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