Psychological effects drive the stock
Mojmir Hlinka from the Swiss asset manager AGFIF International sees the steep rise in Tesla’s share price more psychologically justified. “Behind this lies the so-called availability bias, that is, availability misconduct. There is a green jolt going through the world, investors are reading about green topics everywhere, and everyone is talking about Tesla,” Hlinka said tagesschau.de.
This so-called “availability bias” is one of the distortions that the later Nobel Prize winner Daniel Kahneman and his colleague Amos Tversky already described in the early 1970s. Applied to the stock market, it means that investors are more inclined to invest in shares of companies if they have a strong media presen
(Published in the German National TV ‘ARD’ 10/27/2021 by Angela Göpfert, tagesschau.de)
> Article in ‘The Globe Echo’ an independent English Newspaper
