Regret Minimization

Remember: Investors do not exhibit feelings of regret in the presence of bad economic news.

elaborate please…

they attribute the loss to something that was out of their control

i kinda understand but not really? page # and book would be appreciated

I hate that when the behavioral trait looks like A or B or C or even D… I wonder who defines it, behavioral finance people or some psychological expert…?

It’s in Book 2 - under regret minimization. My books are packed away in my underground dungeon.

well its kinda obvious. if the market tanks and your portfolio tanks, you wont regret your decision as much.

understand the explanation but cant say I agree… Sure it is an excuse but I would still be kicking myself if I bought S&P futures today and tomorrow the whole market collapses… Yeah, it is out of my control, but I would surely be full of regret, no?

sorry im just going from memory. I just remember the whole notion behind regret minimization is minimizing actions you have control over that can lead to regret. It was sort of along the same lines as the “pshychological call option” by having an investment advisor. if its the advisors fault you wont feel regret because it was out of your control. Same idea with bad economic news… does that help at all?

ok, feel better, thanks…