INVESTOR SENTIMENT - THEORETICAL ASPECTS AND PRACTICAL CONCLUSIONS, IN THE CONTEXT OF THE PANDEMIC CRISIS

Anca Ioana, Iacob (Troto)
Additional contact information
Anca Ioana, Iacob (Troto): University of Craiova

Management Strategies Journal, 2021, vol. 51, issue 1, 122-128

Abstract: In the current context of the health crisis of 2020, in which financial analysts and researchers foresee an economic and financial crisis that will follow, this work analyses the subject of the psychology of participants in financial market mechanisms, as a determining factor of their evolution. Financial market reviews should not overlook the emotional component of the stock market functioning. Market sentiment plays an important role in the evolution of stock market volatility and can significantly influence registered indices in a positive or negative sense. This theoretical study of investor sentiment is a conceptual foundation of the economic reality we live in. Based on a concatenation of the aspects that researchers have expressed in their scientific researches, this study concludes by determining causal factors of the parallel evolution of market sentiment and economic growth. At the same time, the aim of the study is to draw the attention regarding the implications that an enhancement of investors' sentiment may have on the deepening of the decline of financial markets. In the context of the Covid-19 crisis, the study's conclusion is a recommendation to investors for rational balance and caution in the basis of decisions.

Keywords: investor sentiment; cyclicity of the economy; market sentiment (search for similar items in EconPapers)
JEL-codes: F44 G02 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.strategiimanageriale.ro/papers/210110.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:brc:journl:v:51:y:2021:i:1:p:122-128

Access Statistics for this article

More articles in Management Strategies Journal from Constantin Brancoveanu University
Bibliographic data for series maintained by Dan MICUDA ().