The tendency of many market participants to anticipate a downturn and VICE VERSA after an upswing. Such expectations have been shown to actually trigger a countervailing movement. – See Animal Spirits, valuability, domino effect, expectations, financial market analysis, financial psychology, fear thesis, herd behavior, bankruptcy cases, foreshadow effects, payday ground rule. – On the corresponding development on the stock markets in Germany and the U.S.A., see the Deutsche Bundesbank’s Monthly Report of September 2005, p. 65 ff. (chart; explanatory attempts; references to further literature in the footnotes).
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