Newsmakers

Hersh Shefrin, Mario L. Belotti Professor of Finance, published an article in the Huffington Post where he builds upon the idea of “aversion to a sure loss” focused on the past presidential election with Hillary Clinton versus Donald Trump. The idea suggests that a person takes a risk to beat the odds and avoid a presumed loss.

Shefrin discusses how the presidential outcome was as a result of "Hillary aversion” since many from states such as Wisconsin and Michigan had traditionally voted democratic but in the past election simply didn't vote. Shefrin argues that people are not “beating the odds” with Trump as president since global warming is not being addressed, but rather being set aside. Furthermore, he explains how Trump has neglected to consider the issue with North Korea’s nuclear weapons, racism, etc. Many “gambled” and did not go out to vote since they believed Clinton would win. However, Shefrin shows that the odds do not look in the people’s favor, stressing the importance of going out to vote in future elections.

An excerpt from the article:

Many gambled for resurrection when they stayed away from the polls last year. Most of those are losing the gamble, as resurrection is in the opposite direction from the country’s present course. In the end, we may all end up on the wrong end of this gamble, unless we all turn out to vote in future elections.

Learn more about Professor Hersh Shefrin »