Is Loss Aversion Causing Investors to Shun Equities?
– Fidelity Investments Used with permission from Investment Manager
The above article is provided by members of the Asset Allocation Research team at Fidelity Investments, one of our institutional investment partners. In this Market Perspective, they conclude that investors may being shying away from equities due to emotional and behavioral biases, primarily loss aversion. By being more aware of these existing behavioral shortcomings, investors may be able to alter their decision making to avoid similar types of excessive short-term over corrections to their investment portfolios.
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