Unit $5$ Discussion: Emotionally Driven Factors and Portfolio Performance

Your role as a junior financial planner in a wealth management firm in New York City typically involves direct client interaction and discussion about

portfolio performance. Today, a client said that she needs to see steady growth in the portfolio. The client is particularly interested in selling

investments that do well to lock in those gains and holding onto investments that aren't performing as well in hopes they'll bounce back.

What aspects of this decision suggest that it might be driven by emotional factors rather than rational decision$-$making? How would you discuss the

potential portfolio performance with this particular client?