Thousands of years ago one of your ancient ancestors was enjoying the spoils of a recent hunting trip when suddenly a saber toothed tiger jumped out of the bush. Your cave man relative had a choice, fight off the tiger or drop the food and run. They ran….and they ran fast. The human brain is an amazing thing, it has evolved over the eons to help us survive. Most of those eons involved surviving physical threats where flight over fight was often the smart choice.
The financial “threats” we face in the 21st century are diametrically opposed to the physical threats of ancient times. Stock market crashes, unlike hungry saber toothed tigers, often present opportunities as opposed to imminent death. My very simple example here downplays the complex neurobiology of the human brain that drives us to make poor financial decisions, but the end result is the same: humans are hardwired to be poor investors.