OpenMarkets Weekly: A Closer Look At Market Psychology

At a Glance

  • Markets sometimes defy fundamentals based on the sentiment of participants

It’s often said that when a market goes higher it climbs a wall of worry, but when it goes lower, it takes the elevator down. Jack Bouroudjian looks at how market psychology can drive market performance in directions at odds with fundamentals.

As an example, he looks at WTI crude performance over the fourth quarter of 2019, when crude slowly climbed before a quick decline in price to end the year. “The basic human emotions which accompanied crude prices going higher, then lower are the same for every market,” says Jack.

Watch the full video above.

 

 

OpenMarkets is an online magazine and blog focused on global markets and economic trends. It combines feature articles, news briefs and videos with contributions from leaders in business, finance, economics and politics in an interactive forum designed to foster conversation around the issues and ideas shaping our industry.

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