Behavioral Portfolio Theory and Investment Decisions

Maria is a wealth manager who applies behavioral finance concepts to personalize her clients' investment strategies. One of her clients, an affluent retiree named John, has exhibited a tendency to avoid stocks due to a past market downturn. Maria recognizes that John's behavior may be influenced by behavioral biases described in Behavioral Portfolio Theory, which suggests that investors frame their portfolios in a specific way based on their emotional responses and historical experiences.

In this context, which of the following statements best aligns with the principles of Behavioral Portfolio Theory as it applies to John's investment decision-making?