Videos | January 21, 2011

The mistake of not giving up

The mere act of owning something can make us look at it in a more favourable light. It’s as if you view it through rose tinted glasses.


As ING senior economist Ian Bright explains, this so-called “endowment effect” can have big implications when it comes to buying and selling investments.

Should I sell? It's worth a lot to me.
Such thinking traps might make us less inclined to sell an investment on a losing streak. We might be reluctant to sell our house for a “lower” price, for example.
Bright gives tips to overcome these thinking traps and says “when considering what you own, try to take a step back” to get a clearer view.
 

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