It’s a useful intuition pump for value investment (check out Benjamin Graham), it pre-dates meme trading. Due to loss aversion humans are irrational about negat

It’s a useful intuition pump for value investment (check out Benjamin Graham), it pre-dates meme trading. Due to loss aversion humans are irrational about negative price movements, so you need some cognitive strategy to counteract. Here’s one example: if you have a 401k, CD, bond, or investment fund your investment is illiquid for some lockup period. Therefore you don’t have to mark-to-market every day. As a matter of accounting facts, you are not forced to book the loss in this scenario.