Are You Suffering From Get-Evenitis?

Have you ever invested in something and watched the value of your investment wither away?
If so, why didn’t you sell? Perhaps you suffered, or are suffering from a case of “get-evenitis.”
“Get-evenitis” is the layman’s term for loss aversion.
Loss aversion is a reluctance to sell investments after they have decreased in value. It may also be referred to as the breakeven effect.
Research shows that many individuals suffer from loss aversion. Individual investors are approximately 1.5 times* more likely to sell a stock that has risen as opposed to selling a stock that has fallen.
For example, suppose you bought 100 shares of Citigroup …read more