Given all that is going on in the world, investors have questions. Will the Federal Reserve cut interest rates, and if so, by how much? Who will win the U.S. presidential election, and will it impact markets? How will global events affect my family and finances? A lot remains uncertain, which can naturally make investors uneasy.
For many people, uncertainty is something to avoid or at least mitigate. People often talk more about the downside to uncertainty than its upside. There’s even a term, loss aversion, that reflects how a loss can feel more painful than a gain of an equal amount can feel rewarding.
