- “Several Academic experiments have demonstrated that for studied investors, a loss bothers them twice as much in absolute terms than the pleasure from an equal gain. An investor who loses $10,000 on a specific stock feels twice as much pain than if that person had $10,000 profit (reward) on the same exact investment.” Ricciardi, Victor, The Psychology of Risk: The Behavioral Finance Perspective. HANDBOOK OF FINANCE: VOLUME 2: INVESTMENT MANAGEMENT AND FINANCIAL MANAGEMENT, Frank J. Fabozzi, ed., John Wiley & Sons, pp. 85-111, 2008
- “A study conducted by San Diego State University professor John Ayers appeared in the February 2014 issue of the American journal of Preventive Medicine. This study dramatically shows how the ill effects of the stock market cause ulcers, migraines, and even hospitalization of stressed investors. The research compared the cumulative internet searches of “stress maladies” during the Great Recession to the years leading up to this time frame.” How a Lousy Economy Can Make You Sick, Gil Weinreich
- “The top “stress maladies” involved arrhythmia, chest pain, hernia indicators, headache symptoms, and stomach ulcer symptoms. As compared to pre-recession statistics, searches on the internet for these symptoms were up: Arrhythmia up 32%, Chest Pain up 35%, Hernia up 37%, Headaches up 1935, Ulcers up 228%” How a Lousy Economy Can Make You Sick, Gil Weinreich
- “The 2014 Dalbar report specifically stated that: “Attempts to correct irrational behavior through education have proved to be futile. The belief that investors will make prudent decisions after education and disclosure has been totally discredited.” In plain English, Dalbar is simply stating the obvious heuristic behavior of herding: consumers invest when the market is high and sell when it is low.” Investor Education Is ‘Futile,’ ‘Totally Discredited’: Dalbar, Gil Weinreich