{"id":1584,"date":"2021-04-11T12:46:28","date_gmt":"2021-04-11T12:46:28","guid":{"rendered":"http:\/\/cashvisory.examinia.com\/?p=1584"},"modified":"2021-04-11T13:17:48","modified_gmt":"2021-04-11T13:17:48","slug":"the-psychological-reason-preventing-you-from-getting-rich","status":"publish","type":"post","link":"https:\/\/www.cashvisory.com\/blog\/the-psychological-reason-preventing-you-from-getting-rich\/","title":{"rendered":"The Psychological Reason Preventing You from Getting Rich"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1584\" class=\"elementor elementor-1584\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f409e03 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f409e03\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-513af1cc\" data-id=\"513af1cc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-34119556 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"34119556\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-15a5519d elementor-widget elementor-widget-text-editor\" data-id=\"15a5519d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Key Takeaways<\/strong><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><strong>For the same amount of gains and losses, we associate a much larger reduction in value for the loss as compared to the increase in value from an equal amount of gain.<\/strong><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><strong>As a result of this skewed perception of losses as being extremely negative, we end up choosing safer investment options with little or no risk such as fixed deposits or saving schemes.<\/strong><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><strong>The extreme aversion to high return instruments can have a significant impact on one\u2019s net worth in the long run as their real inflation adjusted returns are actually negligible.<\/strong><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><strong>You should create a <a style=\"font-size: 16px; background-color: #ffffff;\" href=\"https:\/\/www.cashvisory.com\/blog\/modern-portfolio-theory-how-to-achieve-optimal-diversification\/\">diversified portfolio<\/a><span style=\"font-size: 16px;\"> comprising varying percentages of stocks, bonds, property, gold, etc. to ensure you are in the best position to make money while minimising your risks.<\/span><\/strong><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-46a37574 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"46a37574\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9c10f84 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9c10f84\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fc89e9a\" data-id=\"fc89e9a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-9cd0de2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9cd0de2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-5bad9f6\" data-id=\"5bad9f6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4446804 elementor-widget elementor-widget-text-editor\" data-id=\"4446804\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">India is facing a problem: the problem of risk aversion. This might be the single greatest obstacle to people getting rich and making their dreams come true. You might say that risk tolerance is inherent to an individual, shaped by experiences and intrinsic ability to take risks. Although that is partly true, there are a couple of other factors at play, making us more risk averse than we should be as rational individuals. One of the reasons often cited is a lack of knowledge of how financial markets and investments work. Understanding how everything works demystifies finance, thereby reducing the degree of risk aversion. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0944481 elementor-widget elementor-widget-text-editor\" data-id=\"0944481\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Unfortunately, information alone does not determine one\u2019s level of risk aversion. Had that been the case, we would not see so many educated and financially informed individuals making the same mistake. This happens because there is a bigger factor at play here: we are only human. And no, we are not being philosophical. The propensity to be risk averse is literally embedded in human emotions and a deeply rooted psychological anomaly we all suffer from. In this blog post, we unwind what this anomaly is from the lens of the Prospect Theory.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-566ea72\" data-id=\"566ea72\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f38831b elementor-widget elementor-widget-image\" data-id=\"f38831b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"704\" height=\"735\" src=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1.png\" class=\"attachment-medium_large size-medium_large wp-image-1599\" alt=\"psychology in investing\" srcset=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1.png 704w, https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1-287x300.png 287w\" sizes=\"(max-width: 704px) 100vw, 704px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ea150a0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ea150a0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-24b12a8\" data-id=\"24b12a8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3d5c85e elementor-widget elementor-widget-heading\" data-id=\"3d5c85e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is prospect theory?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-57e99a9 elementor-widget elementor-widget-text-editor\" data-id=\"57e99a9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Prospect theory postulates that we incorrectly perceive the value of gains and losses. For the same amount of gains and losses, we associate a much larger amount of reduction in value for the loss as compared to the increase in value from the gain. If an individual gains Rs 10,000 vs loses Rs 10,000, they tend to associate the loss with a lot more pain as compared to the joy from the gain. As rational individuals, we should perceive equivalent gains and losses with the same proportion of positive and negative emotion, but we do not. This is the root cause of the risk aversion problem.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d3b92f7 elementor-widget elementor-widget-image\" data-id=\"d3b92f7\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"617\" height=\"587\" src=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image3.png\" class=\"attachment-large size-large wp-image-1587\" alt=\"prospect theory visualized\" srcset=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image3.png 617w, https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image3-300x285.png 300w\" sizes=\"(max-width: 617px) 100vw, 617px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fb1a12f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fb1a12f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a81c730\" data-id=\"a81c730\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bb3bd9c elementor-widget elementor-widget-heading\" data-id=\"bb3bd9c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How does this manifest in our investment choices?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-66242c6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"66242c6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-8535189\" data-id=\"8535189\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2434961 elementor-widget elementor-widget-text-editor\" data-id=\"2434961\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">As a result of the skewed perception of losses as being extremely negative, we end up choosing safer investment options with little or no risk. Some of the options people often go for would be fixed deposits, savings schemes (such as PPF and post office schemes) and endowment plans.\u00a0 High return options such as stocks are considered a \u2018gamble\u2019 by a large proportion of the population.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-149837e\" data-id=\"149837e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-db9a146 elementor-widget elementor-widget-image\" data-id=\"db9a146\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image4-150x150.png\" class=\"attachment-thumbnail size-thumbnail wp-image-1588\" alt=\"safe deposit box\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e242d2 elementor-widget elementor-widget-text-editor\" data-id=\"4e242d2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The extreme aversion to high return instruments can have significant impacts\u00a0 on one\u2019s net worth in the long run as their real inflation adjusted returns are actually negligible. (Find out about how the different investment options compare with each other in our article on the <\/span><a href=\"https:\/\/www.cashvisory.com\/blog\/how-to-protect-your-savings-from-the-impact-of-inflation\/\"><span style=\"font-weight: 400;\">impact of inflation<\/span><\/a><span style=\"font-weight: 400;\">.)<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-92256cd elementor-widget elementor-widget-image\" data-id=\"92256cd\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"924\" height=\"618\" src=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2.png\" class=\"attachment-large size-large wp-image-1589\" alt=\"Asset classes versus inflation\" srcset=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2.png 924w, https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-300x201.png 300w, https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-768x514.png 768w\" sizes=\"(max-width: 924px) 100vw, 924px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d493641 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d493641\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9218de1\" data-id=\"9218de1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-eee08b5 elementor-widget elementor-widget-heading\" data-id=\"eee08b5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What should you actually be doing with your investments?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8599466 elementor-widget elementor-widget-text-editor\" data-id=\"8599466\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Do not get us wrong, we are not vilifying risk-free investments. We are simply highlighting that an overconcentration of these investment types in your portfolio is not the best idea for your financial health. These types of no-risk investments are great solutions for your <\/span><a href=\"https:\/\/www.cashvisory.com\/blog\/are-you-prepared-for-financial-emergencies\/\"><span style=\"font-weight: 400;\">emergency funds<\/span><\/a><span style=\"font-weight: 400;\"> and short term goals (&lt; 3 years). However, you do not necessarily need to take a capital guaranteed approach for growing your wealth and meeting your longer term goals. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dddc98e elementor-widget elementor-widget-text-editor\" data-id=\"dddc98e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The keyword here is diversification. You should still adopt a portfolio strategy that suits your risk profile, however make sure that it is not stemming from psychological biases and completely skewed to one end. Instead, you should create a <\/span><a href=\"https:\/\/www.cashvisory.com\/blog\/modern-portfolio-theory-how-to-achieve-optimal-diversification\/\"><span style=\"font-weight: 400;\">diversified portfolio<\/span><\/a><span style=\"font-weight: 400;\"> comprising varying percentages of stocks, bonds, property, gold, etc. &#8211; the relative proportions of which can be determined by your risk preference. This would put you in the best position to make money while minimising your risks.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-84af501 elementor-widget elementor-widget-image\" data-id=\"84af501\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"764\" height=\"458\" src=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image1.png\" class=\"attachment-medium_large size-medium_large wp-image-1586\" alt=\"psychological reason preventing you from getting rich\" srcset=\"https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image1.png 764w, https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image1-300x180.png 300w\" sizes=\"(max-width: 764px) 100vw, 764px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bfffc46 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bfffc46\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-000fa2c\" data-id=\"000fa2c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-faf4248 elementor-widget elementor-widget-heading\" data-id=\"faf4248\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Bottom Line\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-be898e8 elementor-widget elementor-widget-text-editor\" data-id=\"be898e8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Fear has been one of our greatest friend from an evolutionary point of view. However, disproportionate overestimation of fear can be detrimental for our bank balance in the long run. Try to get over this fear with regards to your investments. We will be coming up with intuitive tools to help you in your journey in the near future. Stay tuned!<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Key Takeaways For the same amount of gains and losses, we associate a much larger reduction in value for the loss as compared to the increase in value from an equal amount of gain. As a result of this skewed perception of losses as being extremely negative, we end up choosing safer investment options with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1599,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5],"tags":[],"class_list":["post-1584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments"],"uagb_featured_image_src":{"full":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1.png",704,735,false],"thumbnail":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1-150x150.png",150,150,true],"medium":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1-287x300.png",287,300,true],"medium_large":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1.png",704,735,false],"large":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1.png",704,735,false],"1536x1536":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1.png",704,735,false],"2048x2048":["https:\/\/www.cashvisory.com\/blog\/wp-content\/uploads\/2021\/04\/image2-1.png",704,735,false]},"uagb_author_info":{"display_name":"Admin","author_link":"https:\/\/www.cashvisory.com\/blog\/author\/admin\/"},"uagb_comment_info":1,"uagb_excerpt":"Key Takeaways For the same amount of gains and losses, we associate a much larger reduction in value for the loss as compared to the increase in value from an equal amount of gain. As a result of this skewed perception of losses as being extremely negative, we end up choosing safer investment options with&hellip;","_links":{"self":[{"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/posts\/1584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/comments?post=1584"}],"version-history":[{"count":14,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/posts\/1584\/revisions"}],"predecessor-version":[{"id":1603,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/posts\/1584\/revisions\/1603"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/media\/1599"}],"wp:attachment":[{"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/media?parent=1584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/categories?post=1584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashvisory.com\/blog\/wp-json\/wp\/v2\/tags?post=1584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}