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GEOMAGNETIC STORM AND IT’S EFFECTS ON FINANCIAL MARKET

Journal: International Journal of Business Management & Research (IJBMR) (Vol.7, No. 2)

Publication Date:

Authors : ; ;

Page : 17-28

Keywords : Behavioral Finance; Geomagnetic Storms; Capital Returns and Misattribution of Moods;

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Abstract

In modern finance the most difficult job is to explain the movement of everyday capital prices. This paper throws a light on enlightens the investors how geomagnetic storms impact daily returns of capital market, deviations in the average returns and change in investor's strategies. Many researcher's study establishes the fact that there is impact on the mood of the investors by the effect of geomagnetic storms which in turn, investors mood are related to behavior of the human, decisions and their judgments. This paper also reveals that investors repeatedly feature their emotions and feelings to an unpredictable cause, which leads to erroneous conclusions which are exaggerated by the effect of geomagnetic storms, which leads to sell them more capital on these violent days because they wrongly feature their worse mood to unconstructive economic prediction as compare to awful environmental conditions. The main principle of this manuscript is to recognize the misattribution of pessimistic choices of assets in capital market and moods, which ultimately affect the capital market return due to behavioral factors and bad environment conditions which is directly affected by geomagnetic storms.

Last modified: 2017-09-05 22:21:37