Dow Drops 500 Pts As Investors Simply Can't Handle Stress

[Jimmy Higgins]

NEW YORK, NY -- Investors panicked in trading today when revenue and earnings calls from large companies didn't exactly go the way investors had expected. The small differences led to a cascade of panic and frenzy on the floors as investors just threw caution to the wind and panicked as if something important happened. By the end of the day, the Dow was down 500 pts.

This is the fourteenth panic related selling frenzy for the New York Stock Exchange in just the past few months, which is causing psychology experts to wonder if investors are mentally up to the job. "When you see a continued pattern of panic," noted Deborah Walker, a Psychology Professor at Georgetown University, "it becomes apparent that there is a problem that needs to be addressed, whether through counseling or if necessary medication.

"A few companies missing their expected profits by a few cents is not a justification for losing self control."

While it is unclear if an intervention will be held for market investors any time soon, a group of experts agree, action is necessary.

"The bipolar reactions of market investors has become cliché," stated Robert Ulson, an expert in the field with helping people with trauma. "It goes up 500 points over very little news, it goes down 500 points over nothing. And we just sit here watching. This isn't investment, this is a cry for help."

 

[skepticalbip]

I always find it interesting when specialists in one field (such as psychology) think that makes them specialists in another field (such as economics or finance). I guess that is like if your only tool is a hammer then everything is seen as a nail.

 

[Jimmy Higgins]

LOL

 

[Jarhyn]

I personally find it hilarious that some people find it hard to recognize that some forms of behavior in various disparate examples are caused by similar root cause.

Systemic sensitivity to minutae indicates something is unhealthy in how the system is regulated or assembled.

This is fairly universal.

 

[skepticalbip]

I personally find it hilarious that some people find it hard to recognize that some forms of behavior in various disparate examples are caused by similar root cause.

Systemic sensitivity to minutae indicates something is unhealthy in how the system is regulated or assembled.

This is fairly universal.

?? Are you in agreement with the apparent "analysis" of the psychologists quoted in the OP? If so then you seem to be making the same assumption of how brokerage houses decide on buys and sells in the market... that it is by essentially individuals making over reaction, rash, panic driven decisions. Would you be surprised to learn that brokerage houses use computer algorithms based on past market trends in response to several conditions... that most trades are automated and placed by their computers?

Brokerage houses' focus is on maximizing returns. A one point drop or rise in a stock price can mean hundreds of thousands of dollars loss or gain. Selling before a stock drops a few points (predicted by the computer algorithm) then buying again as it starts recovering can give the brokerage house hundreds of thousands or millions of dollars prophet rather than just recovering their loss when the stock recovers if they had just held onto the stock.

I'm quite sure that there are psychologists that have some understanding of how brokerage houses work so wouldn't think of agreeing with analysis given in the OP. But then they wouldn't get the press coverage and their name in an article.

 

[Jimmy Higgins]

Jebus man. *points up to the sub forum name*

 

[ZiprHead]

Jebus man. *points up to the sub forum name*

 

[Thomas II]

I always find it interesting when specialists in one field (such as psychology) think that makes them specialists in another field (such as economics or finance). I guess that is like if your only tool is a hammer then everything is seen as a nail.

These financial decisions are driven mainly by two emotions, GREED and FEAR, so I would say that psychology is part of it.

 

[skepticalbip]

I always find it interesting when specialists in one field (such as psychology) think that makes them specialists in another field (such as economics or finance). I guess that is like if your only tool is a hammer then everything is seen as a nail.

These financial decisions are driven mainly by two emotions, GREED and FEAR, so I would say that psychology is part of it.

That is certainly the way Hollywood presents it... and, of course, Hollywood knows everything about everything.

With the right spin, people in any job can be said to be driven by greed and fear. They hold the job because they want the income (greed). They sometimes do things they would rather not (fear of losing their job).

 

[Thomas II]

Investors are people, not robots, and people can be swayed by emotions like fear or excitement. And in the investing world, that can be a big problem.​

https://www.kiplinger.com/article/i...-of-stock-market-and-investment-decision.html

 

[Politesse]

Saw this real article: https://www.bloomberg.com/news/news...WOLvnw21MAljuArbo_aw5okalqrc1V0edhUJLiAKawuxE

And immediately thought of this thread. "Oh no, we might possibly be makingmore money than usual at a slower rate next year, time to panic and lose money early! (Sice Peacock or Paramount+ will surely win the streaming wars after all, not Netflix. You know, the company who very name has become popular slang for hanging out with a buddy and maybe screwing later.)

 

[Thomas II]

Here they go again!

https://www.cnn.com/2022/01/24/investing/dow-stock-market-today/index.html