INVESTOR’S PSYCHOLOGY CYCLE ON THE ROMANIAN CAPITAL MARKET
INVESTOR’S PSYCHOLOGY CYCLE ON THE ROMANIAN CAPITAL MARKET
Author(s): Aurora MurgeaSubject(s): Economy
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: investor psychology; stocks; risk; return; behavior
Summary/Abstract: Modern financial economics assumes that we behave with extreme rationality but we do not. Furthermore, our deviations from rationality are often systematic.This paper tries to offer a starting point in the investor’s psychology analyses in the framework of the latest events in the Romanian capi-tal market. The main conclusion is that the two main phenomenon noticed on this market – the “auto-sustainable” downward trend and the tendency for increase in the market intrinsic volatility lead to a mouvement in the investors’ psychology cicle from the enthusiastic position (in the final of 2007) to the fear/panic position in the October 2008
Journal: Analele Ştiinţifice ale Universităţii »Alexandru Ioan Cuza« din Iaşi. Ştiinţe economice
- Issue Year: 2008
- Issue No: 55
- Page Range: 111-119
- Page Count: 9
- Language: English
