The “Perpetually” Efficient Stock Market Nonsense: The Gaslighting Effects

Author:

Anelli Michele,Patanè Michele

Abstract

Abstract One of the conventional and commonly accepted assumption in the financial world is the Efficient Market Hypothesis (Fama, 1970). However, the intellectual dominance of the efficient-market revolution has more been challenged by economists who stress psychological and behavioral elements of stock-price determination and by econometricians who argue that stock returns are, to a considerable extent, predictable (Malkiel, 2003). “Boom-bust” patterns are the empirical evidence of the efficient market nonsense. We suggest a theoretical linkage between the EMH and the Reflexivity Theory focusing mainly on the psychological profile. We suppose that, during stages of market exuberance/panic, the market pricing produces “gaslighting effects” and that mean-reverting behavior (i.e., contrarianism) is the result of participants’ awareness of psychological deviation from reality. We suspect that investors “benchmarking” plays a primary role on this latter aspect. Outside bubbles episodes, the market pricing is generally efficient and reflects the fundamental value evolution, without producing gaslighting effects. JEL classification numbers: G10, G11, G14. Keywords: Efficient Market Hypothesis (EMH), Reflexivity Theory, Gaslighting Effects.

Publisher

Scientific Press International Limited

Subject

Psychiatry and Mental health,General Engineering,General Materials Science,General Medicine,General Engineering,General Economics, Econometrics and Finance,General Energy,General Medicine,General Earth and Planetary Sciences,General Environmental Science,Polymers and Plastics,General Environmental Science

Cited by 1 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3