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Loss Aversion

‘Hi, I came across this really nice video on the Franklin Templeton website. Check it out!’

When you “fear” something, you often take a “safer” route to avoid this risk. In case of investments too, the fear of loss or “loss aversion” may make one avoid an investment option and hence lose sight of long term financial goals. Our decisions must be rational and goal oriented rather than based on fear. Here is a video which explains this behavior and its drawbacks. See how you can learn from it.