Regret Aversion
This is the tendency to avoid taking an action due to the fear that—in hindsight—it will turn out to have been less than optimal. Like leaving money in a bank account, rather than putting the cash in an investment with…
Category: Junior Investor You can’t afford to give the stock market a miss. Start now to have enough later!
Bigness Bias
Have you also observed that many people behave as if not all dollars are created equal? By assigning relative values to different moneys that in reality have the same buying power, they run the risk of being too quick to spend,…
Hedonic Treadmill
What kind of treadmill is that? You say, “I know only the treadmills from Horizon, Epic, and Lifespan.” Like so many of us, I am quite sure that you have spent some time on the Hedonic Treadmill. The Hedonic Treadmill is one that some people are constantly running…
Loss Aversion
Social scientists have proven that—emotionally—a loss “weighs” at least twice that of a similar gain. That might be great for aspiring body-builders, but not so great for us regular Joes. It’s the actual gaining or losing and your feelings about it that…
You can’t afford to give the stock market a miss. Start now to have enough later!
Bigness Bias
Have you also observed that many people behave as if not all dollars are created equal? By assigning relative values to different moneys that in reality have the same buying power, they run the risk of being too quick to spend,…
Hedonic Treadmill
What kind of treadmill is that? You say, “I know only the treadmills from Horizon, Epic, and Lifespan.” Like so many of us, I am quite sure that you have spent some time on the Hedonic Treadmill. The Hedonic Treadmill is one that some people are constantly running…
Loss Aversion
Social scientists have proven that—emotionally—a loss “weighs” at least twice that of a similar gain. That might be great for aspiring body-builders, but not so great for us regular Joes. It’s the actual gaining or losing and your feelings about it that…