Short-term pain vs longer-term gains
What is myopic loss aversion? Myopic loss aversion is a concept first published by Benartzi and Thaler (1995). It combines a number of biases such as framing, mental accounting and loss-aversion biases. For instance, when given shorter-term performance figures of bonds and equities investors tend to choose more conservative type portfolios, i.e. they choose more bonds than equities. However, when given longer-term performance figures of the exact same assets they choose riskier portfolios. This is mainly due to the fact that over shorter periods bond can outperform equities, however over longer periods, equities tend to outperform bonds. These are classic examples of framing - the time period in which you frame the returns and loss-aversion where losses hurt more than the joy of gains.