The recent sharp correction in the stock market in Hong Kong and the Mainland, of which more intense adjustment of the mainland stock markets,Discount UGG boots, fell more than ten trading days, nearly 20%, causing investors to panic.
Public opinion, the market confidence in the short term is difficult to gather. Yes , in the stock market, confidence is quite important. no confidence in the support of a sustained rebound in the stock market will not, let alone reversed.
confidence come from? ordinary people and economists have a different understanding. Connaught George Bell laureate in economics. Akerlof, Robert representatives and Behavioral Economics. Shiller co-authored the effects to explain the business cycle and asset market changes.
economists elaboration of animal spirits, the earliest known from Keynes, there are many economic activities dominated by the animal spirits, human beings are not always rational. descendants carry forward the Keynes theory of government intervention in the economy, but ignores the spirit of his discussion of the animals. Akerlof and Robert Shiller of Keynes's animal spirits one that expounds: spiritual strength and vitality. However, in modern economics, the animal spirits have slightly different meanings, it is now is an economic term used to refer to the economic turmoil and volatility; It also means that we and the ambiguity or specific link between uncertainty. Sometimes, we are his paralysis, and sometimes it gives us energy, make us cheer, to overcome fear and indecision. changes in human thinking and behavior of non-rational, leading to economic fluctuations.
Akerlof and Shiller the human animal spirits grouped into five areas: faith, fairness, corruption and fraud, money illusion and stories.
in the stock market, confidence, and the story is an important factor in moving the price. In particular, confidence is the main driver of the bull market decide.
investors that confidence is based on the available information obtained on the basis of rational analysis,cheap UGG boots, But that is not the case. people during the so-called rational analysis, often contain irrational elements. when they make decisions, on the basis that they believe that the right thing. Because of that, so confident,UGGs, they will buy in the market. The loss of confidence, it will sell. can be seen, people's investment decisions depend more on the irrational psychological behavior. and smart market speculators, taking advantage of the confidence of the people of this change, by telling stories or creating fear, to affect the confidence of ordinary investors, thereby affecting the market trend, profit from.
fall in the stock market before, a lot of stories circulating in the market. have stories to tell us that the Government will not let the stock market crash, because this year has a special political implications. has said that economic instability, the Government will not allow sharp fluctuations in asset markets. well that in order to guard against inflation, investment asset markets is the best way. these stories enhance people's confidence, which retail deposits move start , hot stock market anomalies. The sharp correction in the stock market, the market has bottomed out over the difficult adjustment of all the claims. This leads to the confidence of retail investors over the losses, have flesh to leave, but is prepared to buy the dips into the main body.
in crisis , stressed confidence may play a role in overcoming fear. but in the stock market, when everyone has confidence, that consistency will be faced with change. And when everyone lost confidence,bailey UGG boots, also pregnant with another species began to change.
led to the current stock market crash is due to profit-shipment, expected earnings of listed companies as well, stock prices are too high, and may be tightening of liquidity and other factors, pre-profit-making profits. But investors should also recognize that, in the global economy has bottomed out, poor performance of listed companies can no longer the case, sharp correction in the stock market actually created new investment opportunities, Moreover, not only from the stock market funds bank loans.
there panic in the stock market, investors may wish to learn a school economist article on the animal spirits.
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