Re:Meta shares rocket 25%, on pace for the best day in a decade
by clnq on Thursday February 02, 2023 @07:01PM
(#34635162)
Behavioral finance explains a lot of irrational investor decisions through fear. A lot of risk aversity comes from fear, but also some risk taking (out of FOMO, for example).
In specific BF terms, the gap between a rational decision and one driven by strong emotions is called the "emotional gap". Sometimes the term is also used when referring to a gap between a fundamental market value of a security or commodity and the observed market value.
In specific BF terms, the gap between a rational decision and one driven by strong emotions is called the "emotional gap". Sometimes the term is also used when referring to a gap between a fundamental market value of a security or commodity and the observed market value.