Investor behavior in crisis: a comparative study of fear-driven downtrends and confidence-led recoveries

What is it about?

This research aims to study how financial crises affect stock markets differently depending on whether the crisis is driven by fear or a loss of trust. It looks at global financial crises such as the 2007 housing bubble, the collapse of Lehman Brothers, and the COVID-19 pandemic. The study compares how stock markets in the USA, China, Spain, Japan, and Germany responded during these crises, focusing on both the downturns and recovery periods. The goal is to understand the behavioral patterns of investors during these crises. It explores how fast-moving crises caused by fear (like COVID-19) differ from slower crises rooted in a loss of trust (like the 2007 financial crisis). The research hopes to help predict future crisis patterns and potentially prevent or lessen their impacts.

Featured Image