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Placeholder Lesson:
** This lesson is generated with AI assistance and approved by Danny Nelson. This lesson will communicate the essence of the topic for now until Danny can create a full lesson. **
Regret aversion is the desire to avoid decisions that could lead to regret.
People may avoid making choices at all because they fear making the wrong one.
This bias sometimes results in inaction, even when action would be beneficial.
In investing, it can cause overly conservative strategies or hesitancy during market volatility.
Regret aversion prioritizes emotional comfort over optimal outcomes.