Millennials pulled money out of investments during market drops at a 67% rate in Allianz Life's 2026 Annual Retirement Study, versus just 8% for boomers. Kahneman and Tversky's 1979 loss aversion research explains the gap: a loss feels roughly twice as painful as an equivalent gain, driving the impulse to sell first. Investors who acted on that instinct during a downturn missed an average of 27% in gains over the following twelve months. Tuesday's Hormuz tanker strikes offer this year's freshest test of that instinct.
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