Author: David Brett
Over the past three decades there have been plenty of shocks to dissuade people from investing. Our data shows what happened after each event.
Wars, disasters, economic strife and political instability have been persistent themes over the last three decades. Such events can affect people’s attitude towards investing.
In many cases they make an already tough decision to invest even harder, leading some to not invest at all. Behavioural scientists have a name for this: loss aversion. They estimate that the psychological pain of losing is about twice as powerful as the pleasure of gaining. Hence some people shy away from the risks involved with investing.
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