The Psychology of the Stock Market
In the daily financial news cycle, one might read that “the market is nervous,” “Wall Street is cheering,” or “the market punished the sector.” These humanized descriptions attribute emotions, reactions, and even motivations to what is, at its core, a complex system of transactions and expectations. But is it accurate or helpful to discuss the market as if it were a person? And with the growing role of algorithmic trading, does the market even have a mind of its own anymore? A Market That “Feels” Journalists, investors, and analysts regularly...