4 ms·
Have you paid attention to either of the past US market busts, in 2000-2001 and 2008? People overwhelmingly ride it into the ground because of two things: - Th
by Cacti 8y ago
Have you paid attention to either of the past US market busts, in 2000-2001 and 2008? People overwhelmingly ride it into the ground because of two things:
- The fear of realizing a loss
- The unrealistic expectation of upside
Also, you'd be hard pressed to find a stock IRL that you could predict in advance as "50/50" and see what participants do, wouldn't you?
- gbear605 8y agoIt seems like it would be fairly simple to design an stock market simulation (with real money payouts) to test this.
- Cacti 8y agoEither way it is not realistic. People losing a few cents on what they know is a simulation is far, far different than people watching their life savings evaporate in an uncertain environment. Besides, the point of that particular study isn't a stock, it's that they have a 50-50 chance of losing money they were just given. The stock is just a placeholder for anything.