THE INVESTORS’ BEHAVIOUR IN THE CONDITION OF GLOBAL FINANCIAL CRISIS

Abstract

This article presents the psychological portrait of investors with particular consideration of the investors’ behaviour and their way of thinking in the condition of global financial crisis. It is shown that the panic and the violent rise in investors’ risk aversion had an essential impact on the scale and range of the financial crisis of 21st century. The author explains also the behavioural aspects of investments and presents that such emotions like fear, panic, euphoria have a tremendous impact on the investor’s decision-making process. In this paper the analysis of the investors’ irrational behaviour and the phenomenon of so called “self-fulfilling prophecy” has been carried out.