Read the following article about Prospect Theory:

https://www.investopedia.com/terms/p/prospecttheory.asp

Assume the market has experienced a steep decline of 30% from its peak (for example, as did happen in March 2020). What does Prospect Theory say about an investor who has lost 30% and was considering the purchase of a new house which would require her to liquidate part of her stock portfolio? Will she prefer to wait? Does she believe the market fall is temporary and it is not a good time to sell? If this is true, does it imply that the market movements are predictable?