Wednesday, February 23, 2011

Behavioral finance at work

Infomoney this morning:

Analistas mudam visão para Cielo e Redecard e papéis disparam na última semana.

Two sentences show behavioral finance at work:

"Embora o cenário não tenha sido substancialmente alterado, a leitura é de que o próprio mercado exagerou. Daniel Malheiros, analista da Spinelli, lembra que o fluxo de notícias para as duas empresas estava muito negativo, com constantes deteriorações das projeções por bancos e anúncio da entrada de novos concorrentes no mercado, como a Credicard."

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1 comments:

sid said...

That is specifically availability bias at work: people assess the importance of an event by the ease the event can be brought to mind.
In this way, recent news are considered very important, because they are vividly present in our memory, seeming to us something specially important.
"...o fluxo de notícias para as duas empresas estava muito negativo, com constantes deteriorações das projeções por bancos e anúncio da entrada de novos concorrentes no mercado..."

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