Loss aversion is a bias to feel the pain of losses more strongly than the pleasure of gains - and this can impact how you invest for your retirement. Nobel Prize-winning economist Daniel Kahneman’s ...

We don’t like to lose things that we own. We tend to become extremely attracted to objects in our possession, and feel anxious to give them up. Ironically, the more we have, the more vulnerable we are ...

Loss aversion is a psychological phenomenon that refers to the tendency of people to strongly prefer avoiding losses rather than acquiring equivalent gains. In other words, the pain of losing ...

One of the more well-known behavioral biases is loss aversion. Loss aversion is a common trait people display where they feel the pain of losing money much more acutely than the pleasure from gains.

Citations: Gal, David. 2006. A Psychological Law of Inertia and the Illusion of Loss Aversion. Judgment and Decision Making. (1)23-32.

The US economy has been throwing off good economic signals for months now, including a steady decline in inflation. Yet Americans' dour mood hasn't budged, and President Biden's economic ratings are ...