Improving Investment Decision-Making Through Behavioral Insights

Effective wealth management requires an understanding of investor behavior, particularly in the context of behavioral finance, which explores how cognitive biases can influence financial decisions. Consider the following scenario:

Maria is a high-net-worth individual who has been investing for over 20 years. Despite her long investment horizon, she often falls victim to emotional decision-making, particularly during market downturns. Recently, during a market correction, she impulsively sold off significant portions of her equity holdings to avoid further losses, despite reassurances from her financial advisor about the importance of sticking to her long-term strategy. Furthermore, Maria expressed a desire to invest more heavily in bonds due to her fear of losing money in equities.

In the context of behavioral finance, which of the following strategies would best help Maria improve her investment decision-making process?