FYI: The idea of loss aversion – that losses ‘loom’ larger than gains – is one of the most established and prominent findings in behavioural economics, and could be considered a foundation stone for the entire discipline. Recent research, however, has questioned the validity and robustness of the supporting evidence, suggesting that it is at worse a false concept and at best overstated (in particular see Yechiam 2018, Gal & Rucker 2017). Given the issues surrounding p-hacking and failed replications, placing such widely-accepted beliefs under scrutiny should be applauded yet, in this instance, some of the claims appear exaggerated.
Regards,
Ted
https://behaviouralinvestment.com/2018/05/01/is-loss-aversion-a-myth/
