The S&P/TSX Composite gained 0.51% on Wednesday, its fourth record close in five trading sessions, while the VIX eased to about 15.3, its lowest level in weeks. Research from Barber and Odean on investor overconfidence has found that winning streaks like this one tend to increase risk-taking among individual investors rather than temper it, partly because a quieter volatility gauge removes an ambient signal of caution. Advisors may find the psychological effect of the hot streak a more urgent client conversation than the streak itself.
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