Learn with ETMarkets: Behaviour science and impact of social media influencers on investment decision

Considering the high returns of 2020 and 2021, there was an anticipation of impossibly high returns from the markets. Irrespective of the performance of the company’s fundamentals, the stock price during the past two years reflected no sign of caution, but now this is not the case. Many textbook investor biases are now coming to fruition. Concepts like loss aversion bias and herd mentality have done a tremendous job in inflating panic.

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