We had a very severe turbulence in the market again. People are asking me why the predications did not see this or why it is happening more often. Throughout history, investing commentators and specialists recognized the power of human psychology on decision making procedures and resulting market outcomes. John Maynard Keynes (1964), a great economist, studied the impact of psychologic factors such as sentiment, whim and simple chance on the people’s decision making. Kent Baker believes that “finance theorists apparently fell prey to “physics envy,” the desire to mathematize the study of financial behavior”.
The anarchy of the market comes exactly from these phycological factors. More people in the market, more fears and sentiments. They are easily vulnerable to the any sharp change in the market and shift the market with emotions. The question is what will happen. I just added the roller coaster of investment which shows the end line which the relief and optimism.
Fasten your seatbelt and do not be panicked!
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steem-network (-2)(1) 7 years ago
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