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stocks ↔ worry

Relations (1)

related 2.00 — strongly supporting 3 facts

The relationship is established because worry directly influences investment behavior regarding stocks, as seen in [1] and [2], and is empirically linked to the concept of stocks in investor perception as noted in [3].

Facts (3)

Sources
Understanding Behavioral Aspects of Financial Planning and Investing financialplanningassociation.org Financial Planning Association 3 facts
measurementIn a 2011 report, Ricciardi found that 70 percent of individuals associate the term “worry” with stocks, while 10 percent associate it with bonds.
claimA higher degree of worry regarding a specific security, such as a stock, increases the perceived risk of that security, lowers the client's risk tolerance, and increases the likelihood that the client will avoid investing in that security.
claimMany individuals anchor on the 2007–2008 financial crisis as a negative experience, which can lead them to become excessively risk-averse and loss-averse, resulting in increased worry and the under-weighting of equities in their portfolios.