Friday, August 31, 2012

Psychological Investing Moods and Sentiments


Moods are relatively long-lasting emotions. Sentiments are shorter-term.
They both can affect how stock market cycles react and can precipitate booms and busts.

That’s because cycles can easily grow into fully grown varieties. It’s the way minor bear markets start and deeper recessions fester. Given enough impetus and human error, financial meltdowns will eventually occur, as I have outlined in my previous reports.

It’s the reason why astute, wise politicians seeking to prevent a deep recession, never make it a practice to single out industry as scapegoats when they want the economy to recover and produce jobs. (See the Earl J. Weinreb NewsHole® comments.)


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