Cut and run: New research predicts risk avoidance in the face of chronic economic loss
Monday, October 27, 2008 - 14:56
in Psychology & Sociology
Individual investors are liquidating their holdings at record levels as financial markets sink, often absorbing losses to avoid possibly worse pain later. Contradicting the counsel of many financial advisers, it also flies in the face of widely accepted behavioral theory and reinforces recent research by Michigan State University scientists.