Psychological transmission effect
In the financial market, the empirically verifiable fact that disturbances in one market segment, such as defaults on consumer loans, have an impact on other areas, even on the market for mortgage bonds, which is crisis-proof due to its strict cover requirements. This is justified by changes in behavior in an agitated market environment (state of nervousness in market environment). Financial psychology has not yet been able to offer an insightful and generally valid explanation of why non-rational behavior ultimately occurs in such cases. – See Animal Spirits, Euro Breakup Index, Financial Market Analysis, Fear Thesis, Sentiment, Sentiment Indicators, Leading Indicators, Payday Rule, Coincidence.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/