Given the deep conditioning of markets, and its constructive reinforcement by monetary rewards, an enormous shock to market psychology — comparable to a severe coverage mistake, an enormous market accident or a mixture of each – could be wanted to shake traders out of a mindset that has served them extremely properly up to now. It’s a mindset that’s resistant to a lot of dangerous information. Certainly, it permits for the quick reframing of such dangerous information into excellent news — for instance, the better the headwinds to the economic system, the upper the probability of one other spherical of stimulus measures from the Fed. No marvel skeptics, significantly within the hedge fund house, have misplaced the urge for food to problem ever rising markets.
https://www.washingtonpost.com/enterprise/why-only-a-huge-shock-will-deter-risk-taking-investors/2021/08/16/ea3f5b80-fe81-11eb-87e0-7e07bd9ce270_story.html?utm_source=rss&utm_medium=referral&utm_campaign=wp_business | Why Solely a Enormous Shock Will Deter Threat-Taking Buyers