As Wall Street and world stocks chalk up record high after record high, anxiety about a steep correction is mounting. Much can be explained by behavioral economics, in particular the "prospect theory" advanced by Daniel Kahneman and Amos Tversky in 1979 that people perceive gains and losses differently, so their investment decisions appear irrational. Related to this is "loss aversion", the notion that people would rather avoid losses than experience equivalent gains.
U.S. futures down
HONG KONG (AP) — Asian stocks were mixed Monday as investors kept a wary eye on joint military drills between U.S. and South Korean forces and awaited a key meeting of central bankers later this week.