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Investment Psychology and Historical Patterns
Recent events lead many people to avoid investing, as they have a bias to constantly make changes in their investments and believe that more activity will improve their returns. Furthermore, people are averse to the idea of losing money and will go to great lengths to avoid it, even if it's not in their best interest. When multiple psychological principles operate together, irrationality occurs on a large scale. The historical book 'Confusions' from 1688 by Joseph De La Vega provides insights into the psychology of investors in the context of the Amsterdam Stock Exchange, demonstrating the enduring nature of investment psychology throughout history.