When faced with a major financial decision...

Written by Don Creech

Posted on 10/24/2009

This week’s poll results measure investor perspectives about their perception of risk. The poll was not scientific and was driven by radio listeners of the syndicated Don Creech Radio Show (www.DonCreech.com) and subscribers to Investor Resources Week In Review email update.

When faced with a major financial decision, are you more concerned about the possible losses or the possible gains?

The vast majority of respondents are more concerned about possible losses by a 92 to 8% margin. This is consistent with studies in investor behavior that have found that a loss is much more emotionally painful than a similar gain is emotionally rewarding.

What degree of risk have you taken with your financial decisions in the past?

Almost two thirds of respondents have taken what they identified as medium amounts of risk. Fifteen percent of respondents have previously taken large risks. Slightly less than twenty five percent have only been tolerant of small risks. This is anecdotal for me. I think this is consistent with the amount of money that remains in savings institutions that have some sort of government guaranty attached to the deposit.

What degree of risk are you currently prepared to take with your financial decisions?

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