When Optimism Peaks, Returns Often Cool

Investor expectations tend to rise after strong returns—but that optimism doesn’t always match reality. Research suggests expected returns are often highest right before performance slows.

Ever felt the urge to sell after a market drop? You’re not alone. Behavioral finance research shows that loss aversion often leads investors to act on fear—selling low and missing recoveries.
→ Check if your portfolio strategy includes rules that help you stay rational during volatility.