Why is this behavior detrimental

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Wendy is watching CNBC during a day in which the stock market dropped, and the flashes of red on the screen, along with the alarm bells the station keeps ringing, are driving her to near insanity. Even though her advisor reminds her that the stock market will be volatile-this is why it earns higher returns than other assets, she can't seem to avoid the news. She is glued to the everominous (this day) "doom and gloom" advice on her TV. It is causing her angst, as well as a tendency to want to sell everything she own.

1) What behavior/bias is present?

2) Why is this behavior detrimental?

3) What could have been done differently, or what could be done differently next time to avoid this result?

Reference no: EM132354938

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