Our financial system is based on the assumption that investment decisions are made rationally. But because we are human, and both our logical and emotional selves play into our planning and investing strategies, the discipline of behavioral finance seeks to explore where and how our emotions cause us to move away from that assumed rational investing behavior. Click here to learn more about how the psychology of risk and reward may impact markets in this report by the Wells Fargo Investment Institute.

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC. Wells Fargo Investment Institute, Inc. is a registered investment adviser and wholly owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.