Investor behaviour during stock market chaos – The Royal Gazette


US capital markets are crashing – when have we seen this before, and how many times have we experienced it?

It’s probably the first time if you are a young investor, for the rest of us it is déjà vu all over again.

It’s nothing new; the cause may be different; the investment, economic and policy pundits may be different, but the debate about the causes of the capital market volatility a couple of days ago on one of the “money” shows became just another routine of “axperts” shouting to each other and their audience.

Nothing new: newspaper headlines reporting the stock market crash of October 1987

Whatever their intent, their messages became repetitive as my thoughts wondered about all those investors who had tremendous gains (on paper) during the Covid investment run-up. We saw the value of some stocks, such as Gamestop, rocket to artificially high levels, after becoming social media investor darlings, an echo of patterns seen during…

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