The disposition effect is risky in the long term. This behavior is especially prevalent among risk-averse investors.
Diversify to reduce risks. Your risk can never be zero, as there are some systematic risks that you can can never diversify away.
The number of Americans investing in stocks (SPY)(IVV) is decreasing. Conservatism toward stocks has caused a dip in stock ownership.
As the end of the year approaches, investors need to calm their fears about capital gains increasing their tax bills. They need to enjoy and celebrate gains accruing from the positive global financial markets.
A recent study by Sussman and Olivola states that people dislike paying taxes because of the rational economic motivation to avoid monetary costs.