Market feeling is a key factor that affects prices in different markets. To analyze and understand how market emotions influence prices, we break down what it includes.

What are market emotions?

Market emotions refer to collective opinion or attitude of investors, merchants and consumers to the general management of the market or asset class. This includes several psychological factors that influence the behavior of investors, such as expectations, emotions and risk avoidance.

Types of market emotions:

There are many types of market emotions that include:

• Positive feeling: Investors believe in the long -term potential of a device or sector.

• Negative feeling: Investors are afraid or doubt about the perspectives of a device or sector.

• Neutral feeling:

  Investors see the device or sector in a balanced way.

How do prices affect market emotions:

Market emotions significantly affect prices through different channels:

• Temo and Gruda: Emotional reactions of market volatility can make investors buy or sell their emotions, not based on the analysis of objectives.

• Risk perception: The perceived risk levels of investors affect their willingness to assume the credit risk or invest in uncertain performance assets.

• Evaluation: Market emotions affect the evaluation of shares, bonds and other values ​​by influencing the market price.

Real examples:

• The dot-com (1995-2000) bubble: market emotions played an important role in the increase and fall of technological actions. Investors were optimistic about new technology companies, but when they realized that these companies did not have a real economic value, their enthusiasm resorted to pessimism.

• The global financial crisis of 2008: The negative emotion of the market has contributed significantly to the crisis on secondary mortgage loans and housing prices.

Conclusion:

Understanding market emotions is essential for investors, merchants and financial professionals to take and nave due to well -known decisions in the complex world of markets. By recognizing the effects of various emotions and prices prices, we can expect market movements and develop effective strategies to manage risk and maximize yields.

Do you want me to develop any specific aspect of market emotions or give you more examples?