Aragon and Arwen Gondor live in Perth, Western Australia. They currently rent an apartment in the CBD. During an initial discussion of the Gondors' financial plans, Aragon Gondor makes the following statements to the Gondor's financial adviser, Bilbo Baggins:

a. "I have used the Internet extensively to research the outlook for the housing market over the next five years, and I believe now is the best time to buy a house."

b. "I do not want to sell any bonds in my portfolio for a lower price than I paid for the bond."

For each statements identify the behavioural finance concept most directly exhibited. Explain how each behavioural finance concept is affecting the Gondors' investment decision making.