Extreme Loss Aversion can come from a realization that ... At the rate you are going in the example above, you are depleting your assets by $30,000 per year. If all you had was $300,000, in ...

Unfortunately, that very feeling of risk aversion might increase the chances ... Take the recent market volatility for example. I know a few guys who were scared of the downturn and moved some ...

This phenomenon reflects loss aversion, and Spencer mentions that this investing bias is normal. "Loss aversion is natural and affects everyone. People seek pleasure and want to avoid pain," he says.

One of behavioral science's more well-known principles of loss aversion is a prime example of this. Loss aversion shows that the pain of losing something we already have is twice as powerful as ...