Comment by veeenu

I worked in wealth management up until recently and can testify this exact behavioral bias was to be found in almost every single client, and sometimes in professionals as well, especially during market downturns. It's likely to be a mix of several factors, such as the fact that losses have a much stronger emotional impact than gains of similar entity, or the fact that most people aren't really trained to reason probabilistically in an intuitive manner. It is easy to be lured in by someone promising the moon when most people won't settle for anything less.