Barry Ritholtz, Columnist

Past Trauma Blinds Investors to Present Danger

The "Recency Effect" triggers loss aversion, even when the threat is misidentified.

February 19, 2016 at 4:01 PM UTC

Barry Ritholtz is a former Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”

Still fighting old wars.
H.F. Davis.Topical Press Agency/Getty Images

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The CFA Institute published its annual sentiment report this week. It surveys individual and institutional investors to determine what they are anxious about.

You might be surprised to learn that about one-in-three is greatly concerned about another 2008-09 type financial crisis: