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Markets are influenced by emotions not fundamentals from "summary" of FAKE: Fake Money, Fake Teachers, Fake Assets by Robert T. Kiyosaki
Financial markets often appear to operate on concrete data—earnings reports, GDP growth, and interest rates. However, beneath the surface, the true drivers of market movements are often rooted in human emotions. Fear and greed overshadow rational analysis, influencing investor behavior in profound ways. During a bull market, optimism reigns supreme. Investors jump on the bandwagon, often ignoring underlying conditions. They are driven by the thrill of potential gains, believing that prices will only rise. This emotional fervor can inflate asset prices beyond reasonable valuations. Conversely, in a bear market, panic sets in. Fear of loss can lead to hasty decisions, resulting in massive sell-offs that further depress prices. This emotional ...
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