Abe and Betty each buy $100 worth of TSLA at $1000. Some time later, Charlie buys $100 worth of TSLA at $2000. Abe and Betty invested $200 but feel $400 in TSLA wealth. Because of Charlie's trade, Abe and Betty feel more confident in their consumer spending. But some time later... Charlie sells his shares of TSLA, but can only find a buyer at $750. Abe and Betty now feel $150 in TSLA wealth. Because of Charlie's trade, Abe and Betty feel less confident in their consumer spending. I would posit that a lot of Americans are miscalculating their wealth.
Complicating matters, loss aversion describes the fact that a gain of $400 in wealth has the same net emotional impact of a loss of about $160. Abe and Betty will experience negative wellbeing for any TSLA price below $240 because of anchoring. 