Dariusz Prokopowicz Nice Question.

The study could be done

1) by undertaking a primary study on investor sentiment

Ref: https://www.nber.org/papers/w13189

2) by studying market efficiency to information

I also agree with thoughts of Tumula DILLESWAR Rao Tumula DILLESWAR Rao Abdolhossein Zameni Ifeanyi Nwanna Samina Rooh Christopher Tai

The new economy illusion of the 1990s is a good case study; we can see that emotions topped logic at the end of the 1990s, stopping at the end of year 2000 without a soft landing. Statistical indicators of that period show only average economic outputs, with high private and public debt levels In the US. The subsequent attacks of 9/11 exactly occured in this ‘bubble expansion‘. One great emotional driver of this ‘tech-no-hype‘ was the collapse of the Soviet system, which reinforced wishful thinking. In fact, much more of a ‘creative destruction‘ happened, which has a deep and negative effect on job creation, if we consider informatic automation progress.

Hello,

Emotions is a very broad subject in psychology. Can you define the type of emotions you want to measure so that we can suggest some tests?

Good luck

Thank you for sharing your idea

Kindly someone explain the rationale behind the stratified random sampling when using for the data collection from the individual investor's ,those who's trading in the stock exchange market.

Regards

The real economy plays different role with the monetary financial markets in today's situation. You could find there is credit bubble originated from the corporate using the balance-sheet switching to increase the debt level but reduce the capital input. It is not allowed in the US after the 2008 financial crisis for those financial institutions. Every financial institution has to pass the stress test the Fed asks every year. But the credit bubble is still there in those corporates which could take advantage of the financial markets. It creates zombies enterprise which has much higher debt-to-equity ratio but still gets lot of attention from people with savings because we have 13 trillion sovereign bonds with zero or negative yield.

Could you relate those buying activities with the emotional human factors or just attribute the phenonmenon to be some kind of yield chasing? Those activities are originated from the real market situation but not human factors.

Stratified random sampling is used, usually, to represent a population strata in an important variables. If, for example, male and female differ in performance in math then it is important to have stratified random sample of male and female. this will insure that the study represent the population accurately.

Thanks for ur response,

Hi,

I suggest an event study analysis.

Emotional factors of investors do not have a place in determination of reactions and returns in an efficient capital market. Free flow of information will ensure all investors are put on the same pedestal.

Confounding variables need to be taken care as well.

Emotions are there in individual investors even there are no bullish or bearish market situations. In your study presence of these situations are assumed. Once we assume such conditions, accordingly we have to go for using available statistical tools for measuring their effect.

Dariusz Prokopowicz Nice Question.

The study could be done

1) by undertaking a primary study on investor sentiment

Ref: https://www.nber.org/papers/w13189

2) by studying market efficiency to information

I also agree with thoughts of Tumula DILLESWAR Rao Tumula DILLESWAR Rao Abdolhossein Zameni Ifeanyi Nwanna Samina Rooh Christopher Tai

In the context of the above discussion, the following question arises:

Can measuring changes in emotions prevailing among stock market investor communities be an important element of the prognostic model used to estimate the likelihood of the appearance of further significant, diametrical changes in the trend of market valuations of securities on stock exchanges and thus identify emerging economic changes in the near future capital markets?

What do you think about this topic?

Please reply

heart beat, blood pressure etc...

Dear Colleagues and Friends from RG,

In the context of the above discussion, I ask the following question: In connection with the development of Financial Industry 4.0 and Business Intelligence, Data Science, Data Analytics, Big Data etc. analytics, will the level of precision of determining future development trends in the scope of fundamental and technical analyzes carried out to investigate the development of the situation and future trends on the markets be increased equity, including stock markets?

Please reply

I invite you to discussion

Thank you very much

Best wishes

Dariusz Prokopowicz

People in Montenegro are saying: Maria walks through the village 30% is dissatisfied..

KAB survey may possibly helpful in adjusting emotional dimensions of investors based on major area of focus.