If it seems likes investors are little more angry these days, it's not just your imagination. MarketPsychData has the stats to prove it.
MarketPsych's Frank Murtha caught up recently with Dow Jones and offered some commentary on the subject and some suggestions for financial advisors in dealing with it.
HERE is a link to a brief video.
Happy Investing.
And hey... let's be careful out there.
Dr. Frankenstocks
Frank Murtha, Ph.D.
Co-founder of MarketPsych
Musings about the latest happenings in the fields of investor psychology, behavioral finance, and neurofinance. We'll explain what the latest research means for you and your bottom-line.
Monday, December 12, 2011
Friday, December 02, 2011
Anger about the Federal Reserve is Rising
Based on our analysis of news chatter, we're seeing a disturbing (in my opinion) trend - increasing anger expressed in references to the Fed in news media.
The below chart demonstrates Anger mentioned in all references to the Fed since 1985. You can see both the declining anger as the U.S. came out of the Volcker-induced recession of the early 1980s and the recent rise in anger associated with economic stagnation and political polarization.
The reason this anger is significant is because high levels of anger can drive drastic and often self-defeating behavior. This is true for individuals (e.g., suicide bombers) and also for crowds (e.g., the U.S. Congress considering abolishing the political independence of the Fed).
More to come about such social and emotional trends...
Richard L. Peterson, M.D.
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