Past performance is no indicator of future results. However, psychologically, depending on one’s own experience combined with their market savvy (or their clients’ or bosses), the past performance may weigh very heavily on today’s perception of market conditions.
When not rational, this can be associated with the Availability Heuristic, a known cognitive bias in humans in which more recent memories weigh more heavily in decision-making than they should, as a balanced component of all the available data.
Many… who suffered through this ordeal developed both lower tolerance for market volatility and greater aversion to risk.