Why do most people invest incorrectly?
Loss Aversion (Prospect Theory)
Daniel Kahneman, Richard Thaler, Robert Shiller, Elinor Ostrom, and other Nobel winners, started a subgroup of economics called behavioral economics that shows that people are not rational. Among the results of their studies, they showed that people, in general, are irrational and risk-averse. For investments, the ideal is to be as rational as possible...
To continue reading please choose one of the following options: