Emotional Biases in Investment Decisions: Harry's Case

Harry is a seasoned investor who primarily invests in technology stocks. Recently, the tech market experienced significant volatility due to regulatory concerns and global supply chain issues. Despite empirical evidence suggesting that his portfolio is well-diversified, Harry finds himself feeling anxious about potential losses. As a result, he begins to shift his investments into safer sectors like utilities and consumer staples, driven by his emotional response to market volatility rather than a data-driven analysis of market conditions.

Discuss how emotional biases, particularly loss aversion and overconfidence, can affect Harry's investment decisions. Furthermore, provide strategies that a financial advisor could suggest to Harry to mitigate these biases and encourage a more rational investment approach.