Sentences with phrase «loss averse»

We know that people are generally loss averse, so they tend to feel losses far more than gains.

I am also very loss averse, so it is painful to consider spending down what it took years to build up.

However, as far as i've read — a loss averse investor holds on to stocks that are falling to avoid realizing a loss and sells winners too quickly.

But most people are loss averse.

The reverse is also true: Some people are extremely loss averse no matter how much money they have.

They hypothesize that loss averse investors may perceive value stocks as riskier than they truly are, given the stocks» recent underperformance, and may therefore require a higher future return from these investments.

Those who were more loss averse had lower striatal activity and performed worse when playing for large potential gains; people who were less loss averse had less striatal activity and worse performance when they were trying to avoid large potential losses.

Not exact matches

If you will sell at the first sign of a loss, you are risk averse.

I certainly wouldn't be averse to a Calvin Ridley in 1st (if deemed the BPA), but I am not sold that the loss of Dez foretells doom.

Pokalsky said the business group is not averse to looking at ways to minimize the partial loss of the state and local tax deductions and backs the governor's plan to convene a study group to restructure the state's tax code.

I can thank an app called Pact, whose creators drew from a mountain of research in psychology and neuroscience that shows we humans are more averse to a loss than a missed gain.

It's a loss, and humans are loss - averse.

Traders, on the other hand, are generally less risk averse because they deal with losses every day; they work with large portfolios of stocks tend to look at the long - term, bigger picture, rather than focusing too much on individual, day - to - day ups and downs.

Job losses, out of control mortgage payments, and being overextended are just a few reasons why people are walking away from debt in droves and becoming debt averse.

As a case in point, my most conservative client — a gentleman so risk averse that even the possibility of a 10 % peak - to - trough loss was anathema to him — informed me in January that he would be closing his accounts with me because I refused to aggressively buy tech stocks and Bitcoin on his behalf.

As a general rule, annuities make sense for people with high incomes and high exposure to capital loss, as well as to people who are sufficiently risk - averse to accept returns below what is achievable through a normal, diversified investing portfolio.

If you're risk - averse, or it's important to you to reduce the impact of liability and loss of your belongings, then you should shop for renters insurance and purchase a policy to protect yourself.

Well, I'd go with a split hybrid option: most people are fairly risk averse so paying down the mortgage is appealing, but the lower payments still have to be made in the event of a job loss, so there's a case to be made for keeping liquid funds outside of the mortgage.

Be risk averse but don't be afraid to make mistakes or take an occasional loss.

I don't recall ever reading a Bernstein recommendation for a 25 % equity allocation other than the table I referenced in which he recommends 30 % equity for extremely risk - averse investors who could tolerate no more than a 10 % bear market loss or 20 % for a 5 % loss.

If you will sell at the first sign of a loss, you are risk averse.

«The risk of runs created by a combination of fixed net asset values, extremely risk - averse investors and the absence of explicit loss - absorption capacity remains a concern,» he said.

Most investors, however, are risk averse, meaning they are willing to give up some of their potential return to protect against potential losses (it's why we diversify in the first place).

The flip side of willingness to take on risk is «loss aversion», or how averse you are to losing a substantial chunk of your money.

If you're risk - averse, or it's important to you to reduce the impact of liability and loss of your belongings, then you should shop for renters insurance and purchase a policy to protect yourself.

Permanent life insurance also appeals to risk - averse people who don't have time to recover investment losses in the event of another financial crash.

Because they're irrationally loss - averse.

Interestingly, the Fincon attendees we surveyed are gma bit less loss - averse than the general population.

Therefore, most investors have the tendency to exhibit risk - averse behavior when facing gains and risk - seeking behavior when facing losses.