Behavioral finance explains a lot of irrational investor decisions through fear. A lot of risk aversity comes from fear, but also some risk taking (out of FOMO,

Behavioral finance explains a lot of irrational investor decisions through fear. A lot of risk aversity comes from fear, but also some risk taking (out of FOMO, for example). In specific BF terms, the gap between a rational decision and one driven by strong emotions is called the "emotional gap". Sometimes the term is also used when referring to a gap between a fundamental market value of a security or commodity and the observed market value.