Loss often hurts more than how good it feels to win. Warren Buffett’s heuristic is “Don’t lose money”, and that’s worked out to be terrific advice for those who have followed him for the long run.
The question now is which record households will trust when prices next jump: the receipts they remember, or the balance sheet the Fed has just published. #BehavioralFinance #FederalReserve #LossAversion
