other extreme makes you overconfident and invest too aggressively
enough to last an actuarial lifetime. But the other extreme makes you overconfident and invest too aggressively. What behavioural finance offers is the middle ground: you diversify your risk across all the different types of investments-from stocks to bonds to real estate, and so on. That way, you get a shock-resistant portfolio due to market shifts while still trying to reach out for opportunity for growth.