Editing Greed and fear (section)

== Greed vs hope ==
Some academics disagree with the notion that greed and fear are main emotions driving financial markets.

According to psychologist Lola Lopes, while [[fear]] is indeed a crucial factor driving financial markets, the majority of investors don't respond that much to [[greed]] but to hope. Lopes indicates that fear, unlike [[hope]], provokes investors to concentrate on unprofitable invests, while hope does the complete opposite.<ref>[https://apps.dtic.mil/dtic/tr/fulltext/u2/a168207.pdf] Between Hope And Fear, The Psychology Of Risk | Lola L. Lopes |  Department Of Psychology University Of Wisconsin, Madison, Wisconsin | 24 MAY 1986 | Pages 65</ref> Furthermore, hope and fear are believed to alter the manner in which investors estimate other possibilities. Fear provokes investors to ask: ''How bad can it get?'', while hope: ''How good can it get?''. In this case, fear drives investors to enhance security, while hope stimulates investors to emphasise potential.<ref>Shefrin, H. (2000). Beyond greed and fear. Boston, Mass.: Harvard Business School Press.</ref>

'''Market Fear''' is one of the strongest emotions in the financial markets. Fear can lead to market crashes. Market fear does not follow a random path. It is usually anti-persistent, but in times of crisis it becomes more persistent, indicating the impact of the crowd effects. The fact that the long-term characteristics of market fear are volatile and change over time is an important result that can lead to a better understanding of financial market behavior. '''Fear of Missing Out''' can lead to price bubbles.<ref>{{cite journal |title=Is market fear persistent? A long-memory analysis |journal=Finance Research Letters |date=1 December 2018 |volume=27 |pages=140–147 |doi=10.1016/j.frl.2018.02.007 |language=en |issn=1544-6123|doi-access=free |last1=Caporale |first1=Guglielmo Maria |last2=Gil-Alana |first2=Luis |last3=Plastun |first3=Alex |hdl=10171/65729 |hdl-access=free }} [[File:CC-BY icon.svg|50px]]  Text was copied from this source, which is available under a [https://creativecommons.org/licenses/by/4.0/  Creative Commons Attribution 4.0 International License].</ref>