A seemingly innocent sentence, but perhaps none truer than what is happening in the markets right now.
It seems like an incredible price right now, especially with OCR new launches looking to breach the $2,000 mark in 2022. Despite the fact that everyone was waiting for the market to bottom when the market was hot, the pain of possibly “losing” money is much stronger than thinking about any gain – even if you are aware that the market will always eventually bounce back up.While somewhat similar, loss aversion can also lead to something called negative bias.
You feel like you’ve just been deflated as you’ve just “lost” $500k, but where did the money actually go?Basically, price is what you pay for something, or what the market thinks something is worth; value is what you think it is worth.