<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This presentation reviews some real examples from a trading daily basis behavior proving the sentiment is one of the most important drivers when it comes to investment decision. During decades of studying and observing the financial markets we have seen different approaches in the light of many prestigious writers. Are we rational enough to be good candidates for Fama’s theory of Efficient Market Hypothesis? Is it true what John Maynard Keynes stated 90 years ago when he said „the market is subject to waves of optimistic and pessimistic sentiment”? Is the financial behavior the new trend in the financial markets? Are Daniel Kahneman (Nobel Prize winner 2002) and Amos Tversky the new challengers in the market theories league? Future research should concentrate on various symptoms of sentiment and what makes investors become prone to sentiment. This is an important issue to be debated since investors constantly have to analyze, process and interpret huge data of information which provides the basis for their actions.</p></abstract>

This presentation reviews some real examples from a trading daily basis behavior proving the sentiment is one of the most important drivers when it comes to investment decision. During decades of studying and observing the financial markets we have seen different approaches in the light of many prestigious writers. Are we rational enough to be good candidates for Fama’s theory of Efficient Market Hypothesis? Is it true what John Maynard Keynes stated 90 years ago when he said „the market is subject to waves of optimistic and pessimistic sentiment”? Is the financial behavior the new trend in the financial markets? Are Daniel Kahneman (Nobel Prize winner 2002) and Amos Tversky the new challengers in the market theories league? Future research should concentrate on various symptoms of sentiment and what makes investors become prone to sentiment. This is an important issue to be debated since investors constantly have to analyze, process and interpret huge data of information which provides the basis for their actions.

A pragmatic view on the financial theories

Proceedings of the International Conference on Business Excellence

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"A pragmatic view on the financial theories"}

This presentation reviews some real examples from a trading daily basis behavior proving the sentiment is one of the most important drivers when it comes to...

A pragmatic view on the financial theories

Online veröffentlicht: 15. Juni 2018

Seitenbereich: 197 - 208

DOI: https://doi.org/10.2478/picbe-2018-0019

Schlüsselwörter
behavioral finance, capital markets, anomalies, bubbles, market sentiment, .financial theories, Romanian capital market, market volatility, market crush, BET-FI Index

© 2018 Mihai Chișu, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

A pragmatic view on the financial theories

Online veröffentlicht: 15. Juni 2018

Seitenbereich: 197 - 208

DOI: https://doi.org/10.2478/picbe-2018-0019

Schlüsselwörterbehavioral finance, capital markets, anomalies, bubbles, market sentiment, .financial theories, Romanian capital market, market volatility, market crush, BET-FI Index

© 2018 Mihai Chișu, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Schlüsselwörter
behavioral finance, capital markets, anomalies, bubbles, market sentiment, .financial theories, Romanian capital market, market volatility, market crush, BET-FI Index