ING Behavioral Finance: The Power of Not Losing Presenter Name - Title 2012 CID: 2775.

Slides:



Advertisements
Similar presentations
Do not put content on the brand signature area RETIREMENT INVESTMENTS INSURANCE Retirement Readiness begins in the workplace… and employers play an increasingly.
Advertisements

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING.
TM. Tactical Asset Management How it could work for you… TM.
CN For agent use only. Not for use with the public. ING Annuity and Asset Sales Presents: ING Performance Trigger Index Strategy – A Story.
Chapter 4 Return and Risks.
ML Strategic Balanced Index™
Not FDIC Insured May Lose Value No Bank Guarantee Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing.
Innovations in Structured Products October 25, 2010 An Innovator’s Dilemma?
© 2009 Investment Technology Group, Inc. All rights reserved. Not to be reproduced or retransmitted without permission. Broker-dealer products and services.
Four tips to keep ACH fraud in the past. 2 ACH Fraud Prevention Steps Businesses Can Take to Minimize Fraud Risk 1 1 b b c c d d e e f f g g a a Monitor.
Track Record Weyland Capital Management employs a tax-sensitive, globally-diversified investment approach.  The firm’s “all-weather” investment approach.
Michipicoten Settlement Trust Trustee Investing September 21, 2012 Heather Richardson, Executive Trust Officer.
Confidential Date: June 2011 PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATION These materials may not be used or relied upon for any purpose other.
13 September 2007] Vurdering af grunnfondsbeviset og grunnfondsbevisbankerne set fra London.
Do not put content on the brand signature area Jamie Wewetzer Client Relations Manager, ING The Final 403(b) Regulations Are Here… For use.
© 2009 Morningstar, Inc. All rights reserved. 3/1/2009 Stocks and Bonds.
For agent use only. Not for public distribution. cn © 2010 ING North America Insurance Corporation Introducing… ING Guaranteed Death Benefit.
TM. Step 1 Selecting your Benchmark Asset Allocation Step 1 Selecting your Benchmark Asset Allocation.
Portfolio Management Group 1 Building Portfolios Using Exchange Traded Funds Nancy Hartsock Financial Advisor Financial Planning Specialist Smith Barney.
TM. Buy low, Sell high… here’s how we try to do it. Mark Riefer President TM.
New Perspectives on Asset Class Investing © 2015 LWI Financial Inc. All rights reserved. LWI Financial Inc. (“Loring Ward”) is an investment advisor registered.
Lesson 10-2 Principles of Saving and Investing LEARNING GOALS: -DISCUSS THE CONCEPT OF RISK VERSUS RETURN. -LIST AND EXPLAIN THE TYPES OF RISK THAT ARE.
Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING.
A Case for Waiting Out the Storm INVESTMENT PRODUCTS: NOT FDIC INSURED  NO BANK GUARANTEE  MAY LOSE VALUE Date Name.
Four tips to mitigate Mobile fraud in the future.
Corporate Overview September Hannon Armstrong Sustainable Infrastructure Capital, Inc. (the "Company") makes forward-looking statements in this.
Power Income Portfolio For more information call:
September 18, Portfolio Strategy In a Rising Interest Rate Environment.
Financial Statement Analysis
Stock Market Volatility and Your Plan. 1 It is important that you understand the ways in which we conduct business and the applicable laws and regulations.
Chapter McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. A Brief History of Risk and Return 1.
Baring Asset Management Limited 155 Bishopsgate, London EC2M 3XY Tel+44 (0) Fax+44 (0) Authorised and regulated.
G:\CS\UK\2007\!P\Gen07\HottestofthehotOct07 – James Henderson V4.ppt Can UK Equity Income funds keep providing good capital and income growth? Wednesday.
EO /11 | ‹#› Not FDIC Insured May Lose Value No Bank Guarantee EO /11 | 1.
RETIREMENT INVESTMENTS INSURANCE Accumulation and Protection Planning Combo A Protection and Retirement Strategy All In One.
Investment and portfolio management MGT 531.  Lecture #31.
Advisor Tool Kit What Has History Shown Us Since World War II, the S&P 500 has experienced a minimum 15% decline 13 times The shortest bottom to peak.
A History of Risk and Return
Mutual Funds Internal use for N.CA office training.
Risks and Rates of Return
SEI Performance Update SEI INVESTMENTS. This material is the sole property of SEI Investments Company and its affiliates (“SEI”). The material is made.
1 International Securities Exchange. 2 Stock Repair Strategy Alex Jacobson ISE Education.
Chapter McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. A Brief History of Risk and Return 1.
© 2014 ING North America Insurance Corporation. CN Premium Financing: Leveraging Assets for Wealth Transfer Planning SMART TOOLS FOR CREATING.
Online banking security best practices Access via ‘transaction devices’
RETIREMENT INVESTMENTS INSURANCE Private Loans: Building Family Wealth While Retaining Some Control SMART TOOLS FOR CREATING FINANCIAL BLUEPRINTS.
Types of risk presentation Types of risk in your retirement account.
Satch Chada, Structured & Alternatives Solutions, Merrill Lynch Michael Forstl, Structured Products Consulting Group, Nuveen Investments April 16, 2008.
Prudential Balanced Fund (PRUBF1) November 2011 Fixed information Licensed Date: 5 October 2006 Listing date: 4 December 2006 Base Currency: VND Tenure:
Chapter McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. A Brief History of Risk and Return 1.
CHAPTER SEVEN FUNDAMENTAL STOCK ANALYSIS Practical Investment Management Robert A. Strong.
2000 Year in Review January, 2001 SEI Investment Advisory Group.
Place Client Logo Here Oil Market Outlook Paul Horsnell Head of Commodities Research, Barclays Capital Intertanko Singapore Tanker Event 30 March 2006.
RETIREMENT INVESTMENTS INSURANCE © 2013ING North America Insurance Corporation. CN Walton GRAT: Preserving Family Wealth with an Estate.
© 2008 RiverSource Distributors, Inc. All rights reserved. Securities products are distributed by RiverSource Distributors, Inc., Member FINRA. RiverSource.
A Registered Investment Advisor 600 Village Trace | Building 23 | Marietta, GA | (770) | Report The Mutual Fund.
Member FINRA/SIPC LPL FINANCIAL RESEARCH Putting Current Markets Into Perspective: Why to Stay Invested The economic forecasts set forth in the presentation.
Market Review February 29, 2016 INTEREST RATES Month-End 2/29/16 Month-End 1/31/16 Year End 12/31/15 Fed Funds Rate Yr Treasury DJ.
Prudential Jennison Value Fund Expiration: 7/31/2016 For financial professional use only. Not for use with the public.
Presenter Name Title MFS Investment Management ® Age-Based Milestones ©2010 MFS Investment Management ®. MFS ® investment products are offered.
Presenter Name Title MFS Investment Management ® Keep more of what you earn Tax-efficient MFS municipal bond funds © 2009 MFS Investment Management.
Stock Terminology (continued) Investors make money in stocks in two ways: –Dividends Companies may make payment to shareholders as part of the profits.
Presented by: David Cox, CFA, CMT, FCSI, FMA, BMath Portfolio Manager October 26th, 2011 Cutten Club, Guelph, ON How To Stop Losing Money: In Bear Markets.
STRIKING A BALANCE How balanced funds may help investors to stay the course toward achieving their long-term goals Name Title Firm The views expressed.
NestEggs Balanced Portfolio Vanguard LifeStrategy Moderate
Timeline of Major Political and Economic Events
Cambria Armor Dividend Strategy Cambria Armor Growth Strategy
TITLE PRESENTATIONDATE AUTHOR JOBTITLE.
Presentation transcript:

ING Behavioral Finance: The Power of Not Losing Presenter Name - Title 2012 CID: 2775

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 2 Behavioral Finance and Managing Our Biases Bank of America Corporation (“Bank of America”) is a financial holding company that, through its subsidiaries and affiliated companies, provides banking and investment products and other financial services. Merrill Lynch, Pierce, Fenner & Smith Incorporated is a wholly-owned subsidiary of Bank of America Corporation, and a registered broker-dealer and member of FINRA and SIPC. Investment products provided by Merrill Lynch, Pierce, Fenner & Smith, Incorporated: The views and opinions expressed in this presentation are not necessarily those of Bank of America Corporation; Merrill Lynch, Pierce, Fenner & Smith Incorporated; or any affiliates. Nothing discussed or suggested in these materials should be construed as permission to supersede or circumvent any Bank of America, Merrill Lynch, Pierce, Fenner & Smith Incorporated policies, procedures, rules, and guidelines. Merrill Lynch, Pierce, Fenner & Smith Incorporated are not tax or legal advisors. Clients should consult a personal tax or legal advisor prior to making any tax or legal related investment decisions. Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 3 Behavioral Finance and Managing Our Biases Does the Market Have You Feeling Like This? Content of this presentation has been approved by the ING Investment Management (Americas) Compliance Department. Certain copywrited and trademarked information illustrated or presented in this material are the property of their respective firms. This material is for illustrative purposes only.

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 4 Behavioral Finance and Managing Our Biases Winning by not Losing Today’s Agenda: Investor Results in the Market The Emotions of Investing The Bedrock of Behavioral Finance – Loss Aversion Rate at which to buy and sell It’s Important to Reduce the Chance of Losing Content of this presentation has been approved by the ING Investment Management (Americas) Compliance Department. Certain copywrited and trademarked information illustrated or presented in this material are the property of their respective firms. This material is for illustrative purposes only.

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 5 Behavioral Finance and Managing Our Biases Investor Results in the Market

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 6 Behavioral Finance and Managing Our Biases Investors Aren’t Keeping Up Data source: Dalbar, Inc. (as of 12/31/10) Past performance is no guarantee of future results. The Standard & Poor’s 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Investors cannot invest directly in an index.

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 7 Behavioral Finance and Managing Our Biases Stop Or Your Portfolio Gets It! “For investors as a whole, returns decrease as motion increases” – Warren Buffet

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 8 Behavioral Finance and Managing Our Biases Long-Term Goals Giving Way to Short-Term Actions Data source: Dalbar, Inc. (as of 12/31/10)

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 9 Behavioral Finance and Managing Our Biases Buy High, Sell Low? Investors tend to... Past performance is no guarantee of future results. Russell 1000 Growth Index measures the large-cap growth segment of the U.S. equity market including Russell 1000 companies with higher price-to-book ratios and forecasted growth. Investors cannot invest directly in an index. Source: Strategic Insight; utilizes Morningstar Large Cap Growth category as definition buy at market highs sell at market lows

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 10 Behavioral Finance and Managing Our Biases The Emotions of Investing

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 11 Behavioral Finance and Managing Our Biases Investor Returns or Investment Returns? Yahoo!® Finance – 6 Numbers Every Investor Should Follow “Investor Returns Morningstar® calculates "investor returns," which measure the average investor's returns in a particular fund, versus its published returns. These returns reveal how much money investors actually make or lose in a fund based on when they buy and sell. More volatile funds generally have lower investor returns because investors make emotional decisions to buy or sell at the wrong times.” Source: Yahoo! Finance. 6 Numbers Every Investor Should Follow. 5/10/11

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 12 Behavioral Finance and Managing Our Biases The Power of Not Losing Where is an Investor’s Trigger Point? Investment LossGain Needed to Recover ?-10%+11% ?-20%+25% ?-30%+43% ?-40%+67% ?-50%+100% “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” – Warren Buffet Past performance is no guarantee of future results. This example is for illustrative purposes only.

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 13 Behavioral Finance and Managing Our Biases Our Biases – Emotional Reaction, Physical Impact Losses have DOUBLE the psychological effect of gains

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 14 Behavioral Finance and Managing Our Biases Our Biases – Emotional Reaction, Physical Impact How Quickly Do You Return to Normal After Winning $1,000? How Long Does it Take to Get Over Losing the Family Pet?

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 15 Behavioral Finance and Managing Our Biases Loss Aversion

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 16 Behavioral Finance and Managing Our Biases Bias: Loss Aversion Loss Aversion - refers to people's tendency to strongly prefer avoiding losses to acquiring gains, typically caused by recent losses. Behavioral Observations  Removing all money from the market, going to 100% cash  Dramatically overweighting fixed income investments  Quick to sell investments with short-term underperformance  Losing focus on longer-term goals and concentrating on daily market volatility Key Concepts  Investors tend to be their own worst enemy, buying and selling at the wrong times  This behavior is the main cause of poor investor outcomes  Every investor has a Trigger Point that creates this reaction and it’s different for everyone  The most important part of achieving long-term goals is to build a plan designed to help eliminate or diminish these behaviors

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 17 Behavioral Finance and Managing Our Biases Is the Image Moving? This example is for illustrative purposes only.

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 18 Behavioral Finance and Managing Our Biases Which Fund Would You Rather Own? 10 Year Average Annual Returns of Two Large Cap Value Equity Funds As of 9/30/11 Past performance is no guarantee of future results. Hypothetical example, this is for illustrative purposes only.

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 19 Behavioral Finance and Managing Our Biases Which Fund Would You Rather Own Now? Fund B experiences a 39% loss during that same time period Fund A loses over 55% during the 2008 downturn… 10 Year Rolling Returns of Two Large Cap Value Equity Funds Past performance is no guarantee of future results. Hypothetical example, this is for illustrative purposes only. Investors Typically Buy At The Peak Investors Typically Sell At The Bottom

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 20 Behavioral Finance and Managing Our Biases We All Have Our Trigger Point

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 21 Behavioral Finance and Managing Our Biases Understanding and Planning Around the Trigger Point Ask a Few Questions To Help Clients Think Through Their Decision Do you believe that an investment under consideration produces a return with little risk? Do you understand the risks? Are you looking to this investment to help you reach your long-term—10 years— investment goals? Do you expect the value to decline the day after you make an investment? If the value does decline immediately, will you withdraw your funds? What if the value declines over the next months? Identify The Trigger Point, Build A Portfolio Aimed at Avoiding It Understand this behavior is deeply rooted in us and nearly impossible to stop Establish the Trigger Point – What will cause loss aversion behavior to kick in? Build a portfolio to help avoid the Trigger Point

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 22 Behavioral Finance and Managing Our Biases Planning Ahead to Manage the Trigger Point If the Trigger Point is Hit, Ask a Few Questions Before Acting Other than the price, what else has changed? What other information do I need to determine if this is truly bad news? Are my original reasons to invest still valid? If I liked this investment enough to buy at a higher price, shouldn’t I like it even more at a lower price? Has this investment ever gone down this much before, and if so would I have done better selling out or increasing my position?

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 23 Behavioral Finance and Managing Our Biases Everyone’s Relationship to Money is Unique Each of us views the value of money differently Which means we each will view loss and risk differently All of us will have a Trigger Point…but the actual number will be unique to us Content of this presentation has beem approved by the ING Investment Management (Americas) Compliance Department. Certain copywrited and trademarked information illustrated or presented in this material are the property of their respective firms. This material is for illustrative purposes only. My View of Money Your View of Money

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 24 Behavioral Finance and Managing Our Biases The Lesson of Behavioral Finance – Managing Loss High negative returns have the potential to put portfolios in a deep hole and trigger our emotional biases Biases are typically deeply engrained in us and can cause us to make poor decisions Understand your biases Don’t fight them, use them to plan in a way that gives you a higher probability of not veering from your established goals

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 25 Behavioral Finance and Managing Our Biases This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources ING Investment Management (“ING IM”) considers reliable; ING IM does not represent that such information is accurate or complete. Certain statements contained herein may constitute "projections," "forecasts" and other "forward-looking statements" which do not reflect actual results and are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events may differ materially from those in such statements due to, among other things, (i) general economic conditions, in particular economic conditions in ING IM's core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) interest rate levels, (vii) currency exchange rates (viii) general competitive factors, (ix) changes in laws and regulations, (x) changes in the policies of governments and/or regulatory authorities, (xi) conclusions with regard to purchase accounting assumptions and methodologies, (xii) ING IM's ability to achieve projected operational synergies. Any opinions, projections, forecasts and forward looking statements presented herein are valid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. ING IM assumes no obligation to update any forward-looking information.

Do not put content on the brand signature area 26 Behavioral Finance and Managing Our Biases Appendix

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 27 Behavioral Finance and Managing Our Biases Understanding Our Decision Making Which return is more attractive to you? +5%or+6% +10%or+15% +15%or+22% -5%or-6% -10%or-15% -15%or-22%

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 28 Behavioral Finance and Managing Our Biases Evaluating Portfolios - Definitions Standard Deviation The variance or dispersion of a portfolio’s returns around its average returns over a period of time. This is a good tool, but it’s important to remember that it’s relative to Fund’s own average. Beta The portfolio's volatility in comparison to the market or benchmark. This helps investors identify a fund’s risk relative to benchmarks either low (beta 1). It’s important to review the Fund’s benchmark performance when considering beta. Alpha The difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by Beta. This helps investors identify the value a manager is adding relative to a benchmark. Sharpe Ratio The reward per unit of risk, with the higher the ratio the better the historical risk-adjusted performance. This helps investors measure risk-adjusted performance. This is not relative to a benchmark and enables comparison of portfolios with different risk levels Downside Capture Ratio A portfolio’s overall performance relative to an index in down markets. This helps investors evaluate how well ( 100) a manager performed relative to an index’s down periods. Information Ratio A special version of the Sharpe Ratio that uses a portfolio’s benchmark in evaluating risk. This helps investors measure both excess return against a benchmark and the consistency of those returns. In other words, did a manager obtain strong returns by beating the benchmark a lot in a few months or consistently by a little each month.

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 29 Behavioral Finance and Managing Our Biases Bias: Loss Aversion Loss Aversion - loss aversion refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies suggest that losses are twice as powerful, psychologically, as gains Key Concepts  Investors tend to be their own worst enemy, buying and selling at the wrong times  This behavior is the main cause of poor investor outcomes  Every investor has a Trigger Point that creates this reaction and it’s different for everyone  The most important part of achieving long-term goals is to build a plan designed to help eliminate or diminish these behaviors  Your Financial Advisor can help you build a portfolio designed to help reduce the chances of experiencing Loss Aversion